Bitcoin Price Plunges Below Key Support, Bulls Face Uphill Battle
Bitcoin (BTC) has recently experienced significant losses, breaking below the crucial $112,500 mark and leaving traders questioning if a bullish rebound is on the horizon. The leading cryptocurrency is currently consolidating its downturn, with analysts suggesting further declines are possible, potentially retesting the $108,500 support zone.
Bitcoin's Extended Decline and Immediate Resistance
The cryptocurrency's price failed to initiate a recovery wave above $114,000, leading to a drop past the $112,500 and $112,000 support levels. A recent low was established at $108,680, and BTC is now struggling below the $111,500 threshold and the 100-hourly Simple Moving Average. Bearish trend lines are evident on the hourly chart, signaling resistance at $110,500 and $113,000. Should Bitcoin maintain its position below the $113,000 zone, continued downward pressure is anticipated. Immediate resistance on the upside is observed near $109,920, followed by the key resistance at $110,500. A breach above this level could push the price towards $111,300, or the 50% Fib retracement level of the recent decline.
Critical Support Levels and Bearish Indicators
The market's immediate outlook for Bitcoin remains precarious. If bulls fail to push the price above the $110,500 resistance zone, a fresh wave of selling pressure could ensue. Key immediate support is identified near $108,800, with a more significant support level at $108,200. Further losses could lead the price to test the $107,500 zone, and in a worst-case scenario, the $106,400 mark in the near term. The ultimate major support is positioned at $105,500, a level that Bitcoin would need to hold to avoid more severe depreciation. Technical indicators reinforce the bearish sentiment, with the Hourly MACD gaining pace in the bearish zone and the Hourly RSI for BTC/USD trading below the 50 level.
