Bitcoin has been experiencing a period of consolidation after a recent uptrend in its price, leading to speculations of a potential breakout in the near future. The cryptocurrency began a fresh increase above the $108,000 zone, with BTC now trading above $108,000 and the 100-hourly Simple Moving Average. A connecting bullish trend line with support at $108,800 has formed on the hourly chart of the BTC/USD pair from Kraken, indicating a positive sentiment in the market.
Despite encountering resistance near the $110,750 level, Bitcoin managed to find support near $107,400 and initiated an upside correction. The price surged above $108,000 and $108,500 resistance levels, briefly breaking above $110,000 before facing selling pressure. A subsequent correction saw the price dip below $110,000 but remain above the 100-hourly SMA and the bullish trend line.
In terms of potential price movements, immediate resistance is observed near $110,000, followed by significant hurdles at $110,750 and $111,800. A breakout above $111,800 could pave the way for further upside momentum, targeting resistance levels at $113,000 and potentially $115,000. On the downside, failure to surpass the $110,750 resistance zone may lead to a correction, with initial support at $108,500 and subsequent levels at $108,350 and $107,850.
Technical indicators suggest a mixed outlook for Bitcoin, with the hourly Moving Average Convergence Divergence (MACD) indicating a slowdown in bullish momentum and the Relative Strength Index (RSI) dipping below the 50 level. Key support levels to watch include $108,500 and $107,500, while resistance levels are identified at $110,000 and $110,750.
Traders and investors are closely monitoring Bitcoin’s price action in anticipation of a potential breakout from its current consolidation phase. The cryptocurrency market remains dynamic, and developments in Bitcoin’s price could have broader implications for the overall market sentiment.
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