Bitcoin Price Faces Stiff Resistance: Is Another Drop on the Horizon?

Bitcoin price started a downside correction below the $96,500 zone. BTC is now trading below $95,000 and struggling to start a fresh increase.

• Bitcoin started a fresh decline below the $95,500 zone.
• The price is trading below $95,500 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $94,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it clears the $95,750 zone.

Bitcoin price started a downside correction below the $97,200 support zone. BTC declined below the $96,200 and $95,500 support levels.

The bears even pushed it below $94,500. A low was formed at $93,570 and the price is now attempting to recover. There was a move above the $94,000 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $97,885 swing high to the $93,570 low.

However, the bears are active near the $95,000 zone. Bitcoin price is now trading below $95,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $94,750 level. There is also a connecting bearish trend line forming with resistance at $94,750 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $95,300 level. The next key resistance could be $95,750 and the 50% Fib retracement level of the recent decline from the $97,885 swing high to the $93,570 low. A close above the $95,750 resistance might send the price further higher. In the stated case, the price could rise and test the $96,800 resistance level. Any more gains might send the price toward the $98,000 level.

If Bitcoin fails to rise above the $94,750 resistance zone, it could start another downside correction. Immediate support on the downside is near the $93,750 level. The first major support is near the $93,500 level.

The next support is now near the $93,200 zone. Any more losses might send the price toward the $92,500 support in the near term. The main support sits at $91,200.

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 – $93,750, followed by $93,500.

Major Resistance Levels – $94,750 and $95,750.