In a significant move, Bitcoin, the world’s largest cryptocurrency by market capitalization, has made an impressive upward rally above the $100,000 mark, generating a fresh wave of optimism among investors. Despite this, however, the virtual coin is currently facing resistance at $103,000 and is aspiring to break to the upside.
The latest bullish surge saw the Bitcoin price trading below $103,200 and the 100 hourly Simple Moving Average (SMA). There is a significant bearish trend line forming, with resistance pegged at $102,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). Analysts are predicting another potential decline if the currency fails to stay above the $103,000 zone.
Bitcoin experienced a minor setback after it commenced a fresh decline below the $103,000 and $102,500 levels. The cryptocurrency dipped below the $100,000 mark before the bulls stepped in. A low was recorded at $97,688 before the price began correcting losses.
The rally saw Bitcoin cross the $99,800 and $100,500 levels. The bulls drove the price beyond the 50% Fibonacci retracement level of the downward wave from the $107,080 swing high to the $97,688 low. Nevertheless, the bears are proving resilient around the $103,000 zone.
Bitcoin is currently trading below the $103,200 mark and the 100 hourly Simple moving average. On the upward trajectory, immediate resistance is forecasted near the $102,500 level. The first significant resistance is expected near the $103,000 level. Further resistance levels could be $103,500 and the 61.8% Fibonacci retracement level of the downward wave from the $107,080 swing high to the $97,688 low.
A close above the $103,500 resistance could propel the Bitcoin price even higher, potentially testing the $105,000 resistance level. Further gains could send the price soaring towards the $107,000 level.
However, if Bitcoin fails to surpass the $103,000 resistance zone, it might face another decline. Immediate support on the downside is estimated near the $101,200 level, followed by significant support near the $100,500 level. The next support is eyeing the $100,000 zone. Any further losses could plummet the price towards the $88,800 support in the near term.
Technical indicators suggest a mixed picture. The Moving Average Convergence Divergence (MACD) is currently losing pace in the bullish zone, while the Relative Strength Index (RSI) for BTC/USD is now below the 50 level. As the situation continues to evolve, investors are advised to stay informed and exercise caution.
