Bitcoin price started a fresh increase above the $104,000 resistance. BTC is now consolidating and could gain pace if it clears the $106,800 resistance.
Bitcoin Price Signals Bullish Breakout
In the past few days, Bitcoin price saw a downside correction from the $109,590 high. There was a move below the $105,000 and $102,500 support levels. BTC even dipped below the $100,000 handle, but the bulls were active above the 50-day simple moving average (blue).
A low was formed at $97,799 and the price is now rising. There was a move above the $100,000 and $102,000 resistance levels. The price surpassed the 50% Fib retracement level of the downward move from the $109,590 swing high to the $97,799 low. More importantly, there was a break above a key declining channel with resistance at $103,750 on the daily chart.
Bitcoin price daily chart | Source: BTC/USD on TradingView.comBitcoin price is still well above the $104,000 level and the 50-day simple moving average (blue). However, the bears seem to be active near the $106,000 zone.
To start a fresh increase, the price must stay above the $102,000 pivot level. On the upside, immediate resistance is near the $106,000 level. The first major resistance is seen near the $106,800 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,590 swing high to the $97,799 low.
The next stop BTC price could be the $109,950 high, above which the price could attempt to clear the $110,000 level. A daily close above the $110,000 resistance zone could set the pace for a move toward the next key resistance at $112,000. Any more gains might call for a test of $115,000 or even $116,800 in the coming days. It is close to the 1.618 Fib extension level of the downward move from the $109,590 swing high to the $97,799 low.
Another Decline In BTC?
Conversely, Bitcoin price might struggle to clear $106,000 or $106,800 and start another decline. Immediate support on the downside is near the $103,200 level.
The first major support is near the $102,000 level and the channel’s trend line. A downside break and close below the $102,000 support might spark more losses. The next support sits at $100,000 and the 50-day simple moving average (blue).
If the bulls fail to protect the $100,000 level, there could be a major pullback. In the stated case, Bitcoin could test the $97,500 support. The next key support could be $92,000.
Overall, Bitcoin is consolidating gains above the $102,000 and $100,000 support levels. To start a fresh increase, it must clear the $106,800 resistance zone. If not, there could be a fresh drop toward the $97,500 support zone.
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