Bitcoin Price Takes Another Hit: Bears Tighten Their Grip

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market volatility and unpredictability. The recent correction in Bitcoin‘s price to below $96,500 is not entirely surprising given the rapid upward move we saw in the past few weeks.

Bitcoin price failed to surpass $100,000 and corrected gains. BTC is back below $96,500 and might revisit the $93,200 support zone.

  • Bitcoin started a fresh decline from the $99,400 zone.
  • The price is trading below $96,500 and the 100 hourly Simple moving average.
  • There was a break below a connecting bullish trend line with support at $98,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it stays above the $95,000 support zone.

Bitcoin Price Dips Again

The price of Bitcoin embarked on an encouraging uptrend, surpassing the significant barrier at roughly $96,500. Subsequently, it managed to rise above the resistance points at approximately $97,500 and $98,000.

Initially, they surpassed the barrier at $99,000 and came close to the next resistance at $100,000. A peak was reached at $99,400, after which the value began a new downward trend. Subsequently, there was a drop below the support at $96,500. Recently, the price fell beneath the 50% Fibonacci retracement level of the upward swing from $92,415 to $99,400.

As I analyze the BTC/USD pair’s hourly chart, I noticed a downward break below a connecting bullish trend line with a support at $98,400. Currently, the Bitcoin price is trading below my marker at $96,500 and also dipping beneath the 100-hour Simple Moving Average.

Currently, the price has settled around the $95,000 mark, which is also where the 61.8% Fibonacci retracement level of the rise from the $92,415 low to the $99,400 high lies. If it continues to increase, initial resistance can be found near $96,400, with a significant resistance at approximately $97,750.

Breaking through the $97,750 barrier could propel the price upwards, potentially reaching $99,000 next. If the price manages to close above $99,000, it might continue climbing higher, possibly challenging the $100,000 resistance. Any further growth might push the price towards the $102,000 mark.

More Losses In BTC?

If Bitcoin doesn’t break through the barrier at $96,500, it might keep falling instead. For now, a potential floor in case of a drop can be found around $95,200.

The first major support is near the $95,000 level. The next support is now near the $93,800 zone. Any more losses might send the price toward the $92,500 support in the near term.

Technical indicators:

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

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

Major Support Levels – $95,000, followed by $93,800.

Major Resistance Levels – $96,500 and $97,750.

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2024-12-27 05:46