Bitcoin’s price action continues to show mixed signals as the leading cryptocurrency tests critical resistance levels near $105,000. After a recent surge that saw BTC approach its all-time highs, short-term bearish pressure is mounting below the $103,500 mark.
As noted in our recent analysis Bitcoin Price Nears $105K: Mixed Signals Warn of Potential Pullback, the market structure suggests increasing caution among traders.
Technical Analysis Shows Critical Support Levels
Key technical levels to watch:
- Immediate Support: $102,850
- Major Support: $101,750
- Critical Resistance: $104,200
- Key Breakout Level: $105,000
Market Structure Analysis
The hourly chart reveals several critical developments:
- Break below the bullish trend line at $103,600
- Trading below the 100-hour Simple Moving Average
- RSI indicating bearish momentum below 50
- MACD showing increasing bearish pressure
Potential Scenarios
Two primary scenarios are emerging:
Bullish Case
- Break above $105,000 could trigger rally to $106,500
- Further extension possible toward $108,000
- Bulls maintaining support at $102,850
Bearish Case
- Failure to break $104,200 could trigger correction
- Support at $100,500 crucial for maintaining momentum
- Risk of testing $98,800 if supports fail
FAQ
Q: What’s the key level to watch for Bitcoin?
A: The $105,000 resistance level is crucial – a clear break above could signal continuation of the uptrend.
Q: Where is the strongest support level?
A: The $102,850 level represents immediate strong support, followed by $101,750.
Q: What technical indicators are showing bearish signals?
A: Both the MACD and RSI are showing bearish momentum, with RSI below 50 and MACD in the bearish zone.