Bitcoin price is correcting gains below the $96,500 resistance. BTC is currently trading below $95,000 and it is likely to face resistance near the $95,750 resistance level.
Bitcoin started a downside correction from the $98,880 area.
The price is trading below $96,000 and the 100 hourly simple moving average.
There was a break above a short term bearish trend line with resistance at $94,200 on the hourly chart of the BTC/USD pair (data source from Kraken).
The pair could start rising again if it breaks above the $95,750 resistance area.
Bitcoin price corrects gains
Bitcoin price struggled to extend gains above $98,800 and $99,000. BTC started a downside correction below $97,000 and $96,000. It even declined below $95,000.
A low was formed at $92,550 and the price is currently rising. The price broke the $93,800 resistance level. The price broke the 23.6% Fibonacci retracement level of the downward move from the $98,880 high to $92,550 low.
Moreover, there was a break above a short term bearish trend line with resistance at $94,200 on the hourly chart of the BTC/USD pair. Bitcoin price is currently trading below $96,000 and the 100 hourly simple moving average.
On the upside, the price is likely to face resistance near $95,200. The first key resistance is near $95,750. It is close to the 50% Fibonacci retracement level of the downward move from the $98,880 high to $92,550 low.
A clear break above the $95,750 resistance level is likely to push the price higher. The next key resistance could be $97,350. A close above the $97,350 resistance level is likely to spark more gains. In such a case, the price is likely to rise and test the $98,880 resistance level. Any further gains could carry the price towards the $100,000 level.
BTC drops again?
If bitcoin fails to clear the $95,750 resistance, it could start another downside correction. An immediate support on the downside is near $93,800.
The first major support is near the $92,500 level. The next support is currently near the $90,000 area. If the price declines further, it could drop to the $88,000 support level in the near term.
Technical indicators:
Hourly MACD – The MACD is currently accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
The main support level – $93,800, followed by $92,500.
Major Resistance Levels – $95,750 and $97,350.
