Bitcoin price is trimming gains from $108,000. However, BTC is still well above key support levels and might aim for a fresh increase.
Bitcoin Price Uptrend Remains Intact
As discussed in the previous analysis, Bitcoin price remained in a strong uptrend above the $95,000 resistance zone. BTC extended gains and traded to a new all-time high at $108,100 before it faced sellers. Recently, there was a sharp downside correction, and the price dived below $105,000.
In the FOMC press conference, the Fed chief said that the central bank is not seeking power to hold bitcoin. It sparked some bearish moves in Bitcoin, Ethereum, XRP, and Cardano.
BTC price traded below the $102,000 support but remained well above the 50-day simple moving average (blue).
Bitcoin price daily chart | Source: BTC/USD on TradingView.comBitcoin price found bids near the $99,000 level. It is still following a rising channel with support at $98,000 on the daily chart. If the bulls remain active above $98,000, there could be a fresh increase.
Immediate resistance is near the $102,000 level. The first major resistance is seen near the $103,800 level. The next stop BTC price could be the $105,500 zone, above which the price could drift and clear the $108,000 level.
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A daily close above the $108,000 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 $120,000.
Conversely, Bitcoin price might struggle to reach nearly $102,000 or $103,500 and start another decline. Immediate support on the downside is near the $98,000 level and the channel’s lower trend line.
The first major support is near the $95,000 level. It is close to the 23.6% Fib retracement level of the upward move from the $52,756 swing low to the $108,100 high. There is also a key parabolic curve forming with support of nearly $94,000.
The main support sits near the 50-day simple moving average (blue) and $92,000. A downside break below the $92,000 level could send the price toward the $90,000 zone.
If the bulls fail to protect the $90,000 level, there could be a larger pullback. In the stated case, Bitcoin could test the $80,500 support or the 50% Fib retracement level of the upward move from the $52,756 swing low to the $108,100 high. The next key support could be $7,000.
Overall, Bitcoin is correcting gains but is still above the $90,000 support zone. BTC must settle above $102,000 and $103,500 to start a fresh increase.
