Bitcoin Drops 3% Below $107,500 Support Zone

Bitcoin's price has recently experienced a significant decline, falling below the $107,500 support zone. The cryptocurrency tested the $104,600 level, forming a low at $104,604 before beginning to consolidate its losses. Currently, Bitcoin is trading below $107,000 and the 100 hourly Simple Moving Average, indicating a bearish trend.

On the hourly chart of the BTC/USD pair, there is a connecting bearish trend line forming with resistance at $107,550. This trend line is close to the 50% Fibonacci retracement level of the recent decline from the $110,500 swing high to the $104,604 low. If Bitcoin fails to rise above the $107,500 resistance zone, it could start another decline, with immediate support near the $104,500 level and the first major support near the $104,000 level.

Technical indicators suggest a bearish momentum. The MACD is gaining pace in the bearish zone, and the RSI for BTC/USD is now below the 50 level. Major support levels are at $104,000 and $103,200, while major resistance levels are at $106,000 and $107,000. If Bitcoin breaks the $104,000 support zone, it could extend its losses, potentially testing the $103,200 and $102,500 support levels in the near term. The main support sits at $101,200, below which BTC might gain further bearish momentum.

On the upside, immediate resistance is near the $106,000 level, with the first key resistance near the $107,000 level. A close above the $107,500 resistance might send the price further higher, potentially testing the $108,000 resistance level and even rising toward the $110,000 level. However, the current bearish trend suggests that Bitcoin might struggle to recover above $107,500 in the near term.