Bitcoin Steadies After Market Plunge, Showing First Signs of Recovery After a volatile period, Bitcoin's price is showing tentative signs of stabilization, hovering above crucial support levels following a recent significant drop. The cryptocurrency is currently navigating a delicate balance, with analysts watching key resistance points for confirmation of a sustained upward trend.
BTC's Attempt at Reclaiming Lost Ground
Bitcoin experienced a sharp decline after failing to overcome the $110,000 resistance level, pushing it into a bearish zone below $108,000 and $106,500. The digital asset even dipped beneath $105,000, bottoming out at $103,583. However, a recent recovery wave has seen BTC surpass the $105,000 mark and break above a critical bearish trend line at $107,500 on the hourly chart. It is now trading above $108,000 and the 100-hour Simple Moving Average, indicating a potential shift in momentum. Immediate upside targets are set around $109,500, followed by the significant $110,000 psychological barrier, and then $111,250, which aligns with the 61.8% Fibonacci retracement level of the previous decline.
Potential Hurdles and Downside Risks
Despite these early recovery signals, the path ahead for Bitcoin remains challenging. Should the cryptocurrency fail to breach the $110,000 resistance zone, a renewed downward trend could ensue. Key support levels to watch include $108,000, $107,500, and $106,200. A break below these could see the price testing $105,500, with the most critical support residing at $103,500. Technical indicators offer mixed signals; while the Hourly MACD is gaining momentum in the bullish territory and the Hourly RSI is above the 50 level, the overall market sentiment remains cautious following the recent downturn. Traders are advised to monitor these levels closely as Bitcoin attempts to solidify its recovery.
