- Bitcoin price encounters resistance below $117,500 that recently tested its fair value at $102,500 during sell off.
- Bitcoin price below the 50 and 100-period EMAs signals that short-term bearish bias remains in the market outlook.
- Bitcoin price may test the $123,000 resistance once again in case it maintains prices above the $102,500 support.
Bitcoin price has been affected, following its failure to sustain upside momentum above the key resistance of $117,500. After reaching a high of almost $123,000, it has gone down leaving many traders wondering whether Bitcoin price will rise and move higher. Given that price dipped below important support levels, the focus is now on whether Bitcoin will be able to rebound and challenge these crucial resistance levels.
Key Support and Resistance Levels for Bitcoin Price
According to Analyst Altcoin Sherpa, Bitcoin price recently retested its $102,500 support after being unable to maintain the price above the $105,000 – $110,000 resistance area. This is one of the levels that will be important in confirming the direction of the price change (in the bearish direction or a reversal). In case it is broken, it will have the next support at $95,000.
Source: Analyst Altcoin Sherpa/X
Most of the short-term sentiment is bearish because Bitcoin price is below the 50-period and 100-period exponential moving averages (EMAs) which is an indication that it could start trading downwards. The fact that the price has had a difficult time breaking the $105,000 mark is an indicator of further declines that might still arise unless there is a rebound to break resistance.
There is selling pressure at lower volumes indicating a falling Bitcoin price. According to analyst Altcoin Sherpa, this trend may see Bitcoin price retest its previous support line at $116,000, with it potentially going even lower to the support level located at $111,843. But in case of decreasing volume and rising buying pressure, a specific recovery might take Bitcoin price higher, leading to as high as $123,000.
Source: Analyst Altcoin Sherpa/X
Bitcoin price has broken to the upside of the $116,000 support so far. Provided it does, the upside will likely take it to around the highs of $117,500 before the price would breakout with a potential move to $123,000.
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