Bitcoin Extends Decline — Market Remains Under Pressure From Risk-Off Tone

Bitcoin price is correcting gains below $112,500. BTC could continue to move down if it stays below the $112,000 resistance.

Bitcoin started a downside correction below the $112,000 support.
The price is trading below $112,000 and the 100 hourly Simple moving average.
There is a bearish trend line forming with resistance at $111,500 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 $108,800 zone.

Bitcoin Price Dips Further

Bitcoin price failed to stay above the $113,500 pivot level and extended losses. BTC dipped below $112,500 and $112,000 to enter a bearish zone.

The decline was such that the price traded below the 61.8% Fib retracement level of the upward move from the $106,718 swing low to the $116,310 high. Besides, there is a bearish trend line forming with resistance at $111,500 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $112,000 and the 100 hourly Simple moving average. If the bulls attempt a fresh increase, the price could face resistance near the $111,500 level and the trend line. The first key resistance is near the $112,000 level.

The next resistance could be $112,500. A close above the $112,500 resistance might send the price further higher. In the stated case, the price could rise and test the $113,200 resistance. Any more gains might send the price toward the $113,500 level. The next barrier for the bulls could be $115,000 and $115,500.

More Losses In BTC?

If Bitcoin fails to rise above the $112,500 resistance zone, it could continue to move down. Immediate support is near the $110,000 level. The first major support is near the $108,800 level or the 76.4% Fib retracement level of the upward move from the $106,718 swing low to the $116,310 high.

The next support is now near the $108,000 zone. Any more losses might send the price toward the $106,500 support in the near term. The main support sits at $103,500, 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 – $108,800, followed by $108,000.

Major Resistance Levels – $111,500 and $112,000.

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