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Will Bitcoin Recover? What the Latest Price Plunge Means for Investors
In the latest bitcoin news, Bitcoin’s price has taken a significant downturn, trading below the crucial $112,500 level. This decline has led to a consolidation phase, with potential further dips anticipated as the cryptocurrency tests the $108,500 support zone. A fresh decline was initiated as Bitcoin fell beneath the $112,500 mark, with the current trading price lingering below $111,500 and the 100-hour Simple Moving Average (SMA).
The hourly chart of the BTC/USD pair, sourced from Kraken, shows the emergence of two bearish trend lines. These lines indicate resistance levels at $110,500 and $113,000. If Bitcoin remains below the $113,000 threshold, it is likely to continue its downward trajectory.
Bitcoin’s price failed to establish a recovery, remaining stubbornly below the $114,000 resistance level. The cryptocurrency has now entered a bearish zone after slipping below both the $112,500 and $112,000 support levels. The decline intensified after crossing below the $111,500 mark, eventually reaching a low of $108,680, where it is currently consolidating losses.
Interestingly, a minor recovery attempt has brought Bitcoin close to the 23.6% Fibonacci retracement level of the recent drop, which ranges from the $113,939 swing high to the $108,680 low. However, Bitcoin continues to trade below the pivotal $112,500 and the 100-hour SMA. Additionally, the significant resistance levels on the hourly chart remain at $110,500 and $113,000.
Immediate resistance can be found near the $109,920 level, with key resistance at $110,500 and the associated trend line. Should Bitcoin manage to close above the $111,300 resistance, it could signal a potential rally, possibly testing the $112,500 resistance next. Continued bullish momentum may then push the price towards $113,000, with targets extending to $114,500.
What Lies Ahead for Bitcoin?
Investors should be cautious, as a failure to breach the $110,500 resistance zone could result in another decline. The immediate support level is positioned around $108,800, followed by a more significant level at $108,200. If Bitcoin continues to falter, the next support could emerge at $107,500, with further declines potentially dragging the price down to the $106,400 support zone.
Ultimately, the main support level sits at $105,500, and a drop below this threshold might hinder Bitcoin’s ability to recover in the near term.
Technical Indicators
Technical analysis reveals that the Hourly MACD is gaining momentum in the bearish zone, suggesting further downward pressure. Meanwhile, the Relative Strength Index (RSI) for the BTC/USD pair is currently below the 50 level, indicating weakness in buying sentiment. Investors should keep a close eye on these indicators, as they may provide insights into Bitcoin’s potential future movements.
In summary, while Bitcoin’s recent price action presents a bearish outlook, the cryptocurrency market remains unpredictable. Investors should stay informed and consider the broader market trends before making any significant trading decisions. For more insights on cryptocurrency trends, feel free to explore this section. If you are interested in trading, check out Binance for more trading options.
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