Bitcoin Correction Deepens – Traders Cautious As Downside Pressure Builds Further

Bitcoin price corrected gains and traded below the $124,000 level. BTC is now struggling and might continue to move down below $120,000.

Bitcoin started a downside correction below the $123,200 level.
The price is trading below $123,000 and the 100 hourly Simple moving average.
There is a bearish trend line forming with resistance at $122,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might continue to move down if it trades below the $120,000 zone.

Bitcoin Price Dips Further

Bitcoin price failed to stay above the $125,000 zone and started a fresh decline. BTC dipped below the $124,000 support to enter a short-term bearish zone.

The bears even pushed the price below $121,200. A low was formed at $119,810 and the price recently recovered some losses. There was a move toward the 50% Fib retracement level of the recent decline from the $123,750 swing high to the $119,810 low.

However, the bears are still active near $121,750. Bitcoin is now trading below $121,500 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $122,750 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $121,750 level. The first key resistance is near the $122,250 level and the 61.8% Fib retracement level of the recent decline from the $123,750 swing high to the $119,810 low.

The next resistance could be $122,750 and the trend line. A close above the $122,750 resistance might send the price further higher. In the stated case, the price could rise and test the $123,500 resistance. Any more gains might send the price toward the $124,000 level. The next barrier for the bulls could be $125,500.

More Losses In BTC?

If Bitcoin fails to rise above the $122,750 resistance zone, it could start a fresh decline. Immediate support is near the $120,750 level. The first major support is near the $120,000 level.

The next support is now near the $118,500 zone. Any more losses might send the price toward the $116,500 support in the near term. The main support sits at $115,500, below which BTC might struggle to recover in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $120,750, followed by $120,000.

Major Resistance Levels – $122,750 and $123,500.

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