Bitcoin Price Bounce Back Might Be Short-Lived: Here’s Why

Bitcoin price extended losses and tested the $97,650 zone. BTC is now correcting losses and might face hurdles near the $103,000 level.

Bitcoin started a downside correction below the $103,000 zone.
The price is trading below $103,200 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance at $103,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another decline if it stays below the $103,500 zone.

Bitcoin Price Dips Further

Bitcoin price started a fresh decline below the $105,000 and $103,500 levels. BTC even dipped below the $100,00 level before the bulls appeared. A low was formed at $97,688 and the price is now correcting losses.

There was a move above the $99,500 and $100,000 levels. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $107,080 swing high to the $97,688 low. However, the bears are active near the $102,000 zone.

Bitcoin price is now trading below $103,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $102,350 level or the 50% Fib retracement level of the downward move from the $107,080 swing high to the $97,688 low.

The first key resistance is near the $103,000 level. There is also a connecting bearish trend line forming with resistance at $103,000 on the hourly chart of the BTC/USD pair.

The next key resistance could be $104,200. A close above the $104,200 resistance might send the price further higher. In the stated case, the price could rise and test the $105,500 resistance level. Any more gains might send the price toward the $107,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $103,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $100,500 level. The first major support is near the $100,000 level.

The next support is now near the $88,500 zone. Any more losses might send the price toward the $86,500 support in the near term.

Technical indicators:

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

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

Major Support Levels – $100,500, followed by $100,000.

Major Resistance Levels – $102,200 and $103,000.

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