Bitcoin, the world’s most popular digital currency, has experienced another price drop, failing to surpass the highly anticipated $100,000 mark. After being unable to maintain this high, the cryptocurrency has corrected its gains and fallen below the $96,500 mark, with projections suggesting it may revisit the $93,200 support zone.
The decline began in the $99,400 zone, with Bitcoin now trading under the $96,500 mark and the 100 hourly Simple Moving Average (SMA). To make matters worse, there was also a break below a connecting bullish trend line with support at $98,400 on the hourly chart of the BTC/USD pair (data from Kraken). However, hope is not lost; if Bitcoin manages to stay above the $95,000 support zone, there could be a potential for another increase.
Before the recent downturn, Bitcoin had shown promise. It had begun a strong upward movement, managing to climb above the $97,500 and $98,000 resistance levels. Not stopping there, the cryptocurrency also cleared the $99,000 resistance level and came tantalizingly close to the elusive $100,000 mark, reaching a high of $99,400.
Unfortunately, this upward trend was short-lived. The price dipped below the $96,500 support, moving below the 50% Fibonacci retracement level of the upward wave that ran from the $92,415 swing low to the $99,400 high.
Presently, Bitcoin is clinging onto the $95,000 zone, with immediate resistance near the $96,400 level. A clear move above the $97,750 resistance could send the price higher, potentially retesting the $100,000 resistance level. Further gains could even propel the price toward the $102,000 level.
However, if Bitcoin fails to rise above the $96,500 resistance zone, it could continue its downward trajectory. There is immediate support on the downside near the $95,200 level, with major support near the $95,000 level and the next support near the $93,800 zone. If the price falls even further, we could see it heading towards the $92,500 support in the near term.
Technical indicators are not looking promising either. The MACD is now gaining pace in the bearish zone, and the Relative Strength Index (RSI) for BTC/USD is now below the 50 level.
In conclusion, while Bitcoin shows some resistance, it’s facing a potential decline. The coming days will be crucial for the cryptocurrency, as it attempts to regain lost ground and perhaps even make another run at the elusive $100,000 mark.
