Bitcoin price corrected gains and traded below the USD 124,000 level. BTC is struggling now and could fall further below $120,000.
- Bitcoin started a downward correction below the USD 123,200 level.
- The price is trading below $123,000 and the 100 hourly Simple Moving Average.
- A bearish trendline is forming with resistance at $122,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it trades below the $120,000 zone.
Bitcoin price continues to fall
Bitcoin price failed to stay above the $125,000 zone and started a new decline. BTC fell below the $124,000 support and entered a short-term bearish zone.
The bears even pushed the price below $121,200. A low was formed at $119,810 and the price has recently recovered some losses. There was a move towards the 50% Fib retracement level from the recent decline from the $123,750 swing high to the $119,810 low.
However, the bears are still active around $121,750. Bitcoin is now trading below $121,500 and the 100 hourly Simple Moving Average. Moreover, a bearish trendline is forming with resistance at $122,750 on the hourly chart of the BTC/USD pair.
The immediate resistance on the upside is near the $121,750 level. The first major resistance is near the $122,250 level and the 61.8% Fib retracement level of the recent decline from the $123,750 swing high to the $119,810 low.
The next resistance could be $122,750 and the trendline. A close above the resistance at $122,750 could send the price higher. In the mentioned case, the price could rise and test the USD 123,500 resistance. Any further gains could send the price towards the $124,000 level. The next threshold for the bulls could be $125,500.
Lose more in BTC?
If Bitcoin fails to rise above the USD 122,750 resistance zone, it could start a new decline. The immediate support is near the $120,750 level. The first major support is near the $120,000 level.
The next support is now near the $118,500 zone. Any further losses could send the price towards the USD 116,500 support in the short term. The key support is at $115,500, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 120,750, followed by USD 120,000.
Major resistance levels – $122,750 and $123,500.