Bitcoin Drops 1.5% Testing $104,200 Zone

Bitcoin's price has recently experienced a decline, testing the $104,200 zone. The cryptocurrency is currently consolidating and may face challenges in surpassing the $106,800 resistance zone. Bitcoin started a consolidation phase above the $104,000 zone, trading below $106,000 and the 100 hourly Simple moving average. A bullish trend line is forming with support at $104,450 on the hourly chart of the BTC/USD pair. If Bitcoin can clear the $106,800 resistance zone, it could initiate a fresh increase.

Bitcoin's price dipped below the $105,650 support zone and even traded below the $105,200 level, testing the $104,200 zone. A low was formed at $104,279, and the price is now consolidating losses. There was a move above the $104,500 level and the 23.6% Fib retracement level of the recent decline from the $106,820 swing high to the $104,279 low. Bitcoin is now trading below $106,000 and the 100 hourly Simple moving average. Immediate resistance is near the $105,500 level, close to the 50% Fib retracement level of the recent decline from the $106,820 swing high to the $104,279 low. The first key resistance is near the $106,220 level, with the next key resistance at $106,800. A close above the $106,800 resistance might send the price further higher, potentially testing the $107,500 resistance level and even rising toward the $110,000 level.

If Bitcoin fails to rise above the $106,000 resistance zone, it could start another decline. Immediate support is near the $104,500 level and the trend line, with the first major support near the $104,200 level. The next support is now near the $103,200 zone, with any further losses potentially sending the price toward the $102,500 support in the near term. The main support sits at $101,200, below which BTC might gain bearish momentum. Technical indicators show that the MACD is now losing pace in the bullish zone, while the RSI for BTC/USD is now below the 50 level. Major support levels are at $104,200 and $103,200, with major resistance levels at $105,500 and $106,800.