Bitcoin Drops 2% Below $106,800 Facing Resistance

Bitcoin's price has recently experienced a decline, falling below the $106,800 mark. The cryptocurrency is currently consolidating and facing resistance near the $106,200 zone. This decline comes after Bitcoin failed to surpass the $108,800 resistance zone, leading to a drop below the $108,000 and $107,000 levels. The price tested the $103,500 zone, forming a low at $103,400 before beginning to consolidate losses.

Bitcoin is now trading below $106,800 and the 100 hourly Simple moving average. A short-term triangle is forming with support at $104,200 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $105,200 level, with the first key resistance near the $105,500 level. The next key resistance could be $106,200, which is near the 50% Fib retracement level of the downward move from the $108,924 swing high to the $103,400 low.

A close above the $106,200 resistance might send the price further higher, potentially testing the $108,000 resistance level and even rising toward the $110,000 level. However, if Bitcoin fails to rise above the $106,200 resistance zone, it could start another decline. Immediate support is near the $104,200 level, with the first major support near the $103,500 level. The next support is now near the $102,500 zone, and any more losses might send the price toward the $101,200 support in the near term. The main support sits at $100,000, below which BTC might gain bearish momentum.

Technical indicators show that the MACD is now losing pace in the bearish zone, and the RSI for BTC/USD is now below the 50 level. Major support levels are at $104,200, followed by $103,500, while major resistance levels are at $105,500 and $106,200. The price could start a fresh increase if it stays above the $103,500 zone, but the overall sentiment remains cautious as Bitcoin navigates through this period of consolidation and resistance.