Bitcoin price is correcting gains below $112,500. BTC could continue moving lower if it remains below the $112,000 resistance level.
- Bitcoin started a bearish correction below the $112,000 support level.
- The price is trading below the $112,000 level and the 100 hourly simple moving average.
- There is a downtrend line forming with resistance at $111,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may continue to move lower if it trades below the $108,800 area.
Bitcoin price falls further
Bitcoin price failed to stay above the $113,500 pivot level and continued losses. BTC fell below $112,500 and $112,000 to enter the bearish zone.
The decline was so significant that the price traded below the 61.8% Fib retracement level of the upward move from the swing low of $106,718 to the swing high of $116,310. Moreover, there is a downtrend line forming with resistance at $111,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading below the $112,000 level and the 100 hourly simple moving average. If the bulls attempt a new rally, the price could face resistance near the $111,500 level and the trend line. The first major resistance is located near the $112,000 level.
The next resistance could be at $112,500. A close above the $112,500 resistance level could send the price higher. In the mentioned case, the price may rise and test the $113,200 resistance level. Any further gains could send the price towards the $113,500 level. The next hurdle for the bulls could be $115,000 and $115,500.
More losses in BTC?
If Bitcoin fails to rise above the $112,500 resistance area, it may continue to move lower. Immediate support is near the $110,000 level. The first major support is near the $108,800 level or the 76.4% Fib retracement level of the upward move from the $106,718 swing low to the $116,310 high.
The next support is now located near the $108,000 area. Any further losses could send the price towards the $106,500 support level in the near term. Key support is located at $103,500, below which BTC may struggle to recover in the short 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.
Key Support Levels – $108,800, followed by $108,000.
Key resistance levels – $111,500 and $112,000.
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