After a positive surge above the $107,500 mark, Bitcoin (BTC) is now experiencing resistance at $110,500, leading to speculation that the rally might be losing its energy. Bitcoin kicked off a new upward trend that surpassed the $108,000 mark.
Currently trading above $107,800, Bitcoin also remains above the 100 hourly Simple Moving Average. However, a bullish trend line was broken below, with support at $109,450 on the BTC/USD pair’s hourly chart (data garnered from Kraken). If it can overcome the $110,000 resistance zone, it might initiate another upward surge.
Bitcoin’s price began an upward trend after it established itself above the $105,500 support zone. It managed to break past resistance levels of $106,500 and $108,000. The bulls even managed to push the price beyond the $109,200 resistance. A peak was established near $110,375, and the price is now seeing a correction.
There was a drop below the 23.6% Fib retracement level of the upward swing from $105,477 to $110,373. Moreover, there was a break below the bullish trend line, with support at $109,450 on the BTC/USD pair’s hourly chart. Bitcoin is now maintaining a position above $107,500 and the 100 hourly Simple Moving Average.
If Bitcoin fails to break the $110,000 resistance zone, it could see another decline. Immediate support is close to the $108,000 level and the 50% Fib retracement level of the upward swing from $105,477 to $110,373. The first significant support is near the $107,350 level.
The next support is close to the $106,550 zone. If losses continue, the price could drop to the $105,500 support in the near future. The primary support is at $105,000, below which Bitcoin may start to lose momentum.
Technical indicators suggest that the MACD is currently losing pace in the bullish zone, and the RSI for BTC/USD is now below the 50 level. Major Support Levels are at $108,000 and $107,350, while Major Resistance Levels are at $110,000 and $110,500.
