Bitcoin Price Slips Below $110K, Is a Bigger Drop Coming?

Bitcoin price is gaining bearish momentum below $112,500. BTC is struggling to recover and might continue to move down toward the $105,500 level.

• Bitcoin started a fresh decline below the $112,000 zone.
• The price is trading below $112,000 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance at $112,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $112,500 resistance zone.

Bitcoin price started a fresh decline after a close below the $113,500 level. BTC gained bearish momentum and traded below the $112,000 support zone.

There was a move below the $110,000 support zone and the 100 hourly Simple moving average. The pair tested the $108,750 zone. A low was formed at $108,734 and the price is now attempting to recover. It climbed above $109,500 but is still below the 23.6% Fib retracement level of the recent decline from the $117,354 swing high to the $110,692 low.

Bitcoin is now trading below $112,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $110,750 level. The first key resistance is near the $112,500 level. There is also a key bearish trend line forming with resistance at $112,500 on the hourly chart of the BTC/USD pair.

The next resistance could be $113,000 or the 50% Fib retracement level of the recent decline from the $117,354 swing high to the $110,692 low. A close above the $113,000 resistance might send the price further higher.

In the stated case, the price could rise and test the $114,500 resistance level. Any more gains might send the price toward the $115,500 level. The main target could be $116,500.

If Bitcoin fails to rise above the $112,000 resistance zone, it could start a fresh decline. Immediate support is near the $108,500 level. The first major support is near the $107,200 level.

The next support is now near the $106,500 zone. Any more losses might send the price toward the $105,500 support in the near term. The main support sits at $103,500, below which BTC might accelerate lower.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $108,500, followed by $117,200.

Major Resistance Levels – $110,500 and $112,500.