The Bitcoin market finds itself in a precarious position, struggling to maintain its footing above the critical $112,500 and $113,000 thresholds. With the cryptocurrency now charting a downward course, traders are bracing for a potential further decline, with eyes firmly fixed on the crucial $108,000 support level.
Bitcoin's Persistent Downturn
After a failed attempt to breach the $113,000 resistance, Bitcoin initiated a fresh decline, plunging below the $112,000 and $110,500 support zones, signaling a clear shift into bearish territory. The price even dipped as low as $107,483, and is currently consolidating these losses below the 23.6% Fibonacci retracement level of the recent move from the $115,975 high to the $107,483 low. Currently, Bitcoin trades beneath the $110,000 mark and its 100 hourly Simple Moving Average, further cementing the bearish sentiment.
Critical Levels and Technical Outlook
A bearish trend line has emerged on the hourly chart with immediate resistance at $110,500. Should Bitcoin fail to rally above the $110,000 resistance zone, a renewed decline is highly probable. Key immediate support is identified near $108,000, with the first major support sitting at $107,500. Further losses could push the price towards $106,200, with the next critical near-term support at $105,500, and a main support at $103,200. On the upside, a successful break above $110,500 could see the price test $111,800 (the 50% Fib retracement) before challenging $112,500 and $113,000. Technical indicators corroborate this bearish outlook. The Hourly MACD is accelerating its pace deeper into the bearish zone, while the Hourly Relative Strength Index (RSI) for BTC/USD remains firmly below the 50 level, indicating a lack of buying momentum. Traders will closely monitor these levels, as the immediate future for Bitcoin appears heavily dependent on its ability to reclaim lost ground or face deeper corrections.
