Bitcoin Price Pulls Back to Support: Opportunity or Warning Sign?

Bitcoin price started a fresh surge above the $102,500 zone. BTC is now correcting gains and trading below the $103,500 resistance zone.

Bitcoin started a strong increase above the $102,500 resistance zone.
The price is trading below $104,000 and the 100 hourly Simple moving average.
There was a break below a new connecting bullish trend line with support at $103,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $103,500 zone.

Bitcoin Price Corrects Some Gains

Bitcoin price started a fresh increase from the $98,500 support zone. BTC formed a base and was able to clear the $100,000 resistance zone. The bulls even pushed the price above $103,000.

The pair spiked above $105,500 and tested $105,800. A high is formed at $105,728 and the price is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the $95,825 swing low to the $105,728 high.

There was break below a new connecting bullish trend line with support at $103,900 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $104,500 and the 100 hourly Simple moving average.

However, the bulls are now active near the $100,800 support and protecting the 50% Fib retracement level of the upward move from the $95,825 swing low to the $105,728 high. On the upside, immediate resistance is near the $103,500 level. The first key resistance is near the $104,000 level.

The next key resistance could be $105,000. A close above the $105,000 resistance might send the price further higher. In the stated case, the price could rise and test the $106,000 resistance level. Any more gains might send the price toward the $108,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $103,500 resistance zone, it could start another downside correction. Immediate support on the downside is near the $101,500 level. The first major support is near the $100,800 level.

The next support is now near the $100,000 zone. Any more losses might send the price toward the $98,800 support in the near term. The main support sits at $97,500.

Technical indicators:

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

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

Major Support Levels – $101,500, followed by $100,800.

Major Resistance Levels – $103,500 and $105,000.

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