Bitcoin Price Bounces Back: Bulls Eye New Upside Leg

Bitcoin price started a fresh decline and tested the $103,200 zone. BTC is now recovering and might aim for a move above the $106,800 resistance.

• Bitcoin started a fresh decline below the $106,800 and $105,500 levels.
• The price is trading near $105,800 and the 100 hourly Simple moving average.
• There was a break above a key bearish trend line with resistance at $105,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it clears the $106,800 resistance zone.

Bitcoin price started a fresh decline after it failed to clear the $110,000 resistance zone. BTC declined below the $107,000 and $106,000 support levels.

The price even dipped below the $104,000 support level. Finally, it tested the $103,200 zone. A low was formed at $103,078 and the price is now recovering losses. There was a move above the 23.6% Fib retracement level of the recent decline from the $110,411 swing high to the $103,078 low.

Besides, there was a break above a key bearish trend line with resistance at $105,000 on the hourly chart of the BTC/USD pair. Bitcoin is now trading near $105,800 and the 100 hourly Simple moving average.

On the upside, immediate resistance is near the $106,000 level. The first key resistance is near the $106,750 level. It is close to the 50% Fib retracement level of the recent decline from the $110,411 swing high to the $103,078 low. The next key resistance could be $107,500.

A close above the $107,500 resistance might send the price further higher. In the stated case, the price could rise and test the $108,000 resistance level. Any more gains might send the price toward the $110,000 level.

If Bitcoin fails to rise above the $106,750 resistance zone, it could start another decline. Immediate support is near the $105,000 level. The first major support is near the $104,200 level.

The next support is now near the $103,200 zone. Any more losses might send the price toward the $102,500 support in the near term. The main support sits at $100,000, below which BTC might gain bearish momentum.

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 above the 50 level.

Major Support Levels – $104,200, followed by $103,200.

Major Resistance Levels – $106,750 and $107,500.