Bitcoin’s price action has taken a bearish turn, testing critical support at $106,800 as the leading cryptocurrency shows signs of consolidation. This price movement comes amid heightened market volatility, as noted in our recent coverage of Bitcoin’s cooling period at $109K.
Key Bitcoin Price Levels Under Watch
The flagship cryptocurrency has established several crucial technical levels that traders should monitor:
- Current Support: $106,800
- Immediate Resistance: $108,000
- Key Breakout Level: $108,500
- Secondary Resistance: $109,000
- Major Target: $110,000
Technical Analysis Breakdown
Bitcoin’s price structure shows concerning signals on shorter timeframes:
- Trading below the 100-hour Simple Moving Average
- Bearish trend line resistance at $108,000
- 23.6% Fibonacci retracement level breached
- RSI indicating oversold conditions below 50
Potential Scenarios
Two primary scenarios are emerging for Bitcoin’s next move:
Bullish Case
A break above $108,500 could trigger a rally toward $110,000, with potential extension to $112,000. This aligns with recent analysis suggesting Bitcoin’s potential surge to $125K by late 2025.
Bearish Case
Failure to overcome $108,500 resistance could lead to:
- Initial drop to $107,200
- Secondary support test at $106,800
- Possible decline toward $105,000
- Critical support at $103,500
Technical Indicators Overview
| Indicator | Signal |
|---|---|
| MACD | Bearish momentum weakening |
| RSI | Below 50, indicating bearish control |
| Moving Averages | Below 100-hour SMA |
FAQ
What’s causing Bitcoin’s current price decline?
The decline appears technical in nature, with profit-taking occurring after recent highs and resistance at key moving averages.
When might Bitcoin recover from current levels?
A recovery could initiate upon clearing the $108,500 resistance, with stronger confirmation above $109,000.
What’s the worst-case scenario for Bitcoin?
If $103,500 support breaks, Bitcoin could enter a deeper correction phase, potentially testing lower support levels.