Bitcoin Drops 6% to $103,078, Recovering Above $105,800

Bitcoin's price experienced a recent decline, testing the $103,200 zone after failing to surpass the $110,000 resistance level. The cryptocurrency dipped below several support levels, including $107,000 and $106,000, before finding a low at $103,078. Following this decline, Bitcoin has begun to recover, moving above the 23.6% Fib retracement level of the recent drop from $110,411 to $103,078.

Currently, Bitcoin is trading near $105,800 and the 100 hourly Simple Moving Average. A key bearish trend line with resistance at $105,000 has been broken, indicating a potential upward movement. Immediate resistance is near the $106,000 level, with the first major resistance at $106,750, close to the 50% Fib retracement level of the recent decline. If Bitcoin can clear the $106,750 resistance, it may aim for the $107,500 level, and a close above this could push the price towards $108,000 and potentially $110,000.

However, if Bitcoin fails to rise above the $106,750 resistance, it could face another decline. Immediate support is near the $105,000 level, with major support at $104,200 and $103,200. Further losses could see the price drop to $102,500, with the main support sitting at $100,000. Below this level, Bitcoin might gain bearish momentum.

Technical indicators show that the Hourly MACD is gaining pace in the bearish zone, while the Hourly RSI for BTC/USD is now above the 50 level. This suggests a potential for further recovery, but caution is advised as the market remains volatile.

Analysts have noted that the recent recovery in Bitcoin's price is a positive sign for bulls, who are eyeing a new upside leg. However, the cryptocurrency still faces significant resistance levels that it must overcome to continue its upward trajectory. The next few days will be crucial in determining whether Bitcoin can sustain its recovery or if it will face another decline.