Bitcoin Price Touches Support Zone — Will Buyers Step In?

Bitcoin price started a fresh decline and tested the $106,800 zone. BTC is now consolidating and might aim for a move above $108,500

• Bitcoin started a fresh decline below the $108,500 zone.
• The price is trading below $108,000 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $108,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could gain bullish momentum if it clears the $108,500 resistance.

Bitcoin Price Hits Support

Bitcoin price started a fresh decline and traded below the $108,500 support zone. BTC even traded below the $107,400 level and tested the next support at $106,800.

A low was formed at $106,800 and the price is now recovering. There was a move above the $107,500 level. The price surpassed the 23.6% Fib retracement level of the recent decline from the $110,500 swing high to the $106,805 low.

Bitcoin is now trading below $108,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $108,000 level. There is also a key bearish trend line forming with resistance at $108,000 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $108,650 level. It is close to the 50% Fib level of the recent decline from the $110,500 swing high to the $106,805 low. The next key resistance could be $109,000.

A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level. Any more gains might send the price toward the $112,000 level.

Another Drop In BTC?

If Bitcoin fails to rise above the $108,500 resistance zone, it could start another correction. Immediate support on is near the $107,200 level. The first major support is near the $106,800 level.

The next support is now near the $106,000 zone. Any more losses might send the price toward the $105,000 support in the near term. The main support sits at $103,500, below which BTC might gain bearish momentum.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $107,200, followed by $106,800.

Major Resistance Levels – $108,000 and $110,000.