Bitcoin’s price trajectory has taken a bearish turn, with BTC dropping below critical support levels and testing the $104,600 zone. This technical analysis explores the key levels traders should monitor and potential scenarios for Bitcoin’s next major move.
As noted in our recent coverage of Bitcoin’s $107K support level test and increasing whale activity, the market has been showing signs of potential weakness.
Key Technical Levels and Market Structure
The current price action reveals several critical technical developments:
- BTC has broken below the crucial $107,500 support zone
- Price trading under both $107,000 and the 100-hour SMA
- Formation of a bearish trend line with resistance at $107,550
- Critical support cluster forming around $104,000-$104,500
Resistance Levels to Monitor
For any potential recovery, Bitcoin needs to overcome these key resistance levels:
- Immediate resistance: $106,000
- Major resistance zone: $107,000-$107,500
- Psychological barrier: $110,000
Support Zones Under Threat
If selling pressure continues, these support levels become crucial:
- Immediate support: $104,500
- Critical support: $104,000
- Secondary support: $103,200
- Major support: $101,200
Technical Indicators Signal Bearish Momentum
Current technical indicators paint a concerning picture:
- MACD: Gaining momentum in the bearish zone
- RSI: Trading below the 50 level, indicating bearish control
- Fibonacci retracement: Price below 23.6% level from recent swing high
Potential Scenarios and Trading Implications
Two primary scenarios are emerging:
Bullish Case
- Break above $107,500 could trigger run to $108,000
- Further upside potential toward $110,000
- Requires significant buying volume and market confidence
Bearish Case
- Break below $104,000 could accelerate selling
- Next major support at $102,500
- Risk of bearish momentum intensifying below $101,200
FAQ
What’s causing Bitcoin’s current price decline?
The decline appears technical in nature, with price action showing exhaustion after recent highs and increased selling pressure at key resistance levels.
Could Bitcoin recover in the short term?
Recovery is possible but requires a decisive break above $107,500 with strong volume support.
What’s the worst-case scenario for Bitcoin price?
If $101,200 support breaks, BTC could see accelerated downside movement, potentially testing lower support levels.
Traders should maintain strict risk management and watch these key levels closely as Bitcoin’s price action develops in the coming days.
