Bitcoin Hits a Wall—Will Bulls Smash Through or Get Crushed?

Bitcoin’s price action just slammed into a stubborn resistance level—again. Traders are now glued to charts, waiting to see if this is the breakout that kicks off the next leg up... or another rejection that sends BTC back into consolidation purgatory.

Meanwhile, institutional analysts are busy ’recalibrating their models’ (read: frantically rewriting last week’s wrong predictions).

One thing’s certain: whether it’s a fakeout or a moon mission, someone’s about to lose a lot of leveraged money.

Bitcoin Price Faces Hurdles

Bitcoin price started a fresh decline and traded below the $105,500 support zone. BTC even traded below the $105,500 level and tested the next support at $103,200.

A low was formed at $103,200 and the price is attempting a recovery wave. There was a MOVE above the $104,500 level and the 23.6% Fib retracement level of the recent decline from the $110,500 swing high to the $103,200 low. The price even cleared the $105,000 resistance.

Bitcoin is now trading above $105,000 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $104,050 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $106,850 level. It is close to the 50% Fib retracement level of the recent decline from the $110,500 swing high to the $103,200 low.

The first key resistance is near the $107,000 level. The next key resistance could be $107,800. A close above the $107,800 resistance might send the price further higher. In the stated case, the price could rise and test the $109,000 resistance level. Any more gains might send the price toward the $110,000 level.

Another Drop In BTC?

If Bitcoin fails to rise above the $107,000 resistance zone, it could start another decline. Immediate support is near the $105,000 level. The first major support is near the $104,000 level and the trend line.

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 $101,200, below which BTC might gain bearish momentum.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

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

Major Support Levels – $105,000, followed by $104,000.

Major Resistance Levels – $107,000 and $107,800.