Bitcoin, the world’s largest cryptocurrency, is currently undergoing a correction in its gains below the $96,500 resistance level. The cryptocurrency is currently trading below $95,000 and might encounter resistance near the $95,750 level.
The correction commenced after the price began to decline from the $98,880 zone. This drop brought the price below the $96,000 threshold and the 100 hourly Simple Moving Average (SMA). Further, a break was observed above a short-term bearish trend line, with resistance at $94,200 on the hourly chart of the BTC/USD pair, as per data feed from Kraken. The pair may witness another surge if it successfully clears the $95,750 resistance zone.
The Bitcoin price faced hurdles while attempting to extend gains above the $98,800 and $99,000 levels, which led to a downside correction below the $97,000 and $96,000 levels, causing it to even dip below $95,000. A low was then formed at $92,550, leading to a rise in the price.
The cryptocurrency managed to move above the $93,800 resistance level and also cleared the 23.6% Fibonacci retracement level of its recent fall from the $98,880 high to the $92,550 low. Notably, a break above a short-term bearish trend line with resistance at $94,200 on the hourly chart was observed.
The cryptocurrency, however, is still trading below $96,000 and the 100 hourly SMA. The price may face resistance near the $95,200 level on the upside, with the first key resistance at the $95,750 level, close to the 50% Fibonacci retracement level of its recent fall.
A clear break above the $95,750 resistance might push the price higher, with the next key resistance at $97,350. A close above this level might trigger more gains. In such a case, the price could rise to test the $98,880 resistance level, potentially sending the price toward the much-anticipated $100,000 mark.
However, if Bitcoin fails to clear the $95,750 resistance zone, it could see another downside correction. Immediate support on the downside is near the $93,800 level, with major support levels at $92,500 and $90,000. Any further losses might push the price toward the $88,000 support in the near term.
As per technical indicators, the hourly MACD is gaining pace in the bullish zone, while the hourly RSI (Relative Strength Index) for BTC/USD is now below the 50 level.
