Bitcoin Price Bounces Past 105K: Is a Full-Blown Rally Back on the Cards?

Bitcoin price started a recovery wave above the $105,000 zone. BTC is now consolidating and might attempt to clear the $106,500 resistance.

• Bitcoin started a recovery wave above the $105,000 zone.
• The price is trading above $105,000 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $105,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh decline if it breaks the $104,000 support zone.

Bitcoin Price Restarts Increase

Bitcoin price started a fresh decline and traded below the $102,500 support zone. BTC even traded close to the $100,000 zone before the bulls appeared.

A low was formed and the price recovered above the $103,500 resistance. The bulls even pushed the price above the $105,000 resistance. A high was formed at $106,426 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $100,400 swing low to the $106,426 high.

Bitcoin is now trading above $105,000 and the 100 hourly Simple moving average. There is also a bullish trend line forming with support at $105,350 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $106,200 level. The first key resistance is near the $106,500 level. The next key resistance could be $107,600. A close above the $107,600 resistance might send the price further higher. In the stated case, the price could rise and test the $108,800 resistance level. Any more gains might send the price toward the $110,000 level.

Another Decline In BTC?

If Bitcoin fails to rise above the $106,200 resistance zone, it could start another decline. Immediate support is near the $105,200 level and the trend line. The first major support is near the $103,500 level and the 50% Fib retracement level of the upward move from the $100,400 swing low to the $106,426 high.

The next support is now near the $102,000 zone. Any more losses might send the price toward the $100,500 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 bullish zone.

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

Major Support Levels – $105,200, followed by $103,500.

Major Resistance Levels – $106,200 and $107,600.

Read the full article here