Bitcoin Price Eyes New Gains — Is the Next Leg Higher Starting?

Bitcoin price started a fresh decline and tested the $103,200 zone. BTC is now consolidating and might aim for a recovery wave above $106,000.

Bitcoin started a fresh decline below the $106,500 zone.
The price is trading above $105,000 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance at $105,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it clears the $106,000 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price started a fresh decline and traded below the $106,500 support zone. BTC even traded below the $105,500 level and tested the next support at $103,200.

A low was formed at $103,200 and the price is now consolidating losses. There was a move above the $104,200 level and the 23.6% Fib retracement level of the recent decline from the $110,500 swing high to the $103,200 low.

Bitcoin is now trading above $105,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $105,550 level. There is also a key bearish trend line forming with resistance at $105,550 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $106,000 level. The next key resistance could be $106,800. It is close to the 50% Fib retracement level of the recent decline from the $110,500 swing high to the $103,200 low.

A close above the $106,800 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 $106,000 resistance zone, it could start another decline. Immediate support is near the $105,000 level. The first major support is near the $104,200 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 bullish zone.

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

Major Support Levels – $105,000, followed by $104,200.

Major Resistance Levels – $106,000 and $106,800.

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