Bitcoin Price Extends Losses — Is More Downside on the Horizon?

Bitcoin price started a fresh decline and tested the $104,600 zone. BTC is now consolidating and might struggle to recover above $107,500.

Bitcoin started a fresh decline below the $107,500 zone.
The price is trading below $107,000 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance at $107,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend losses if it breaks the $104,000 support zone.

Bitcoin Price Dips Further

Bitcoin price started a fresh decline and traded below the $107,500 support zone. BTC even traded below the $105,600 level and tested the next support at $104,600.

A low was formed at $104,604 and the price is now consolidating losses. There was a move above the $105,200 level, but the price is still below the 23.6% Fib retracement level of the recent decline from the $110,500 swing high to the $104,604 low.

Bitcoin is now trading below $107,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $106,000 level.

The first key resistance is near the $107,000 level. The next key resistance could be $107,500. There is also a connecting bearish trend line forming with resistance at $107,550 on the hourly chart of the BTC/USD pair. It is close to the 50% Fib retracement level of the recent decline from the $110,500 swing high to the $104,604 low.

A close above the $107,500 resistance might send the price further higher. In the stated case, the price could rise and test the $108,000 resistance level. Any more gains might send the price toward the $110,000 level.

Another Drop In BTC?

If Bitcoin fails to rise above the $107,500 resistance zone, it could start another decline. Immediate support is near the $104,500 level. The first major support is near the $104,000 level.

The next support is now near the $103,200 zone. Any more losses might send the price toward the $102,500 support in the near term. The main support sits at $101,200, below which BTC might gain bearish momentum.

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 – $104,000, followed by $103,200.

Major Resistance Levels – $106,000 and $107,000.

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