Bitcoin Price Blinks After the Run, Market Watches the Reaction

[Ben Graham]

Bitcoin price started a fresh increase above $96,000. BTC is correcting some gains and might decline to $94,000 before a fresh increase.

• Bitcoin started a decent increase above $95,000 and $96,000.
• The price is trading above $95,000 and the 100 hourly Simple moving average.
• There is a declining channel or a possible bullish flag forming with resistance at $96,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it stays above the $95,000 zone.

Bitcoin Price Dips and Corrects Some Gains

Bitcoin price managed to stay above the $93,500 support and started a fresh increase. BTC was able to settle above $95,000 and $95,500.

The bulls were able to push the price above $96,000. Finally, the price spiked above $97,500. A high was formed at $97,898, and the price is now correcting some gains. There was a move below the 23.6% Fib retracement level of the recent wave from the $89,995 swing low to the $97,898 high.

Bitcoin is now trading above $95,000 and the 100 hourly Simple moving average. If the price remains stable above $95,000, it could attempt a fresh increase. Immediate resistance is near the $96,000 level. The first key resistance is near the $96,200 level. There is also a declining channel or a possible bullish flag forming with resistance at $96,200 on the hourly chart of the BTC/USD pair.

The next resistance could be $97,000. A close above the $97,000 resistance might send the price further higher. In the stated case, the price could rise and test the $97,800 resistance. Any more gains might send the price toward the $98,800 level. The next barrier for the bulls could be $99,200 and $100,000.

Downside Continuation In BTC?

If Bitcoin fails to rise above the $96,200 resistance zone, it could start another decline. Immediate support is near the $95,000 level. The first major support is near the $94,000 level and the 50% Fib retracement level of the recent wave from the $89,995 swing low to the $97,898 high.

The next support is now near the $93,000 zone. Any more losses might send the price toward the $91,850 support in the near term. The main support sits at $91,500, below which BTC might accelerate lower in the near term.

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 – $95,000, followed by $94,000.

Major Resistance Levels – $96,200 and $97,000.