Bitcoin Price Sideways Action Builds — Will Bulls Step In After a Minor Dip?

Bitcoin price started a fresh increase above the $106,500 zone. BTC is now consolidating and might aim for a move above the $108,000 resistance.

Bitcoin started a fresh increase above the $106,500 zone.
The price is trading above $106,500 and the 100 hourly Simple moving average.
There was a break below a bullish trend line with support at $107,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it stays above the $105,500 zone.

Bitcoin Price Faces Resistance

Bitcoin price started a fresh increase above the $104,200 zone. BTC gained pace and was able to climb above the $105,000 and $105,500 levels to enter a positive zone.

The bulls pushed the price above the $106,500 resistance and the price tested the $108,150 zone. A high was formed at $108,165 and the price is now consolidating gains. There was a break below a bullish trend line with support at $107,300 on the hourly chart of the BTC/USD pair.

However, the price stayed above the 23.6% Fib retracement level of the upward move from the $98,272 swing low to the $108,165 high. Bitcoin is now trading above $106,000 and the 100 hourly Simple moving average.

On the upside, immediate resistance is near the $107,800 level. The first key resistance is near the $108,150 level or the 1.236 Fib extension level of the downward move from the $106,470 swing high to the $98,276 low. A close above the $108,150 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level. Any more gains might send the price toward the $112,000 level.

Bearish Reaction In BTC?

If Bitcoin fails to rise above the $108,150 resistance zone, it could start another decline. Immediate support is near the $105,800 level. The first major support is near the $105,000 level.

The next support is now near the $103,200 zone and the 50% Fib retracement level of the upward move from the $98,272 swing low to the $108,165 high. 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 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 – $105,800, followed by $105,500.

Major Resistance Levels – $107,800 and $108,150.

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