Bitcoin Correction Worsens, Is a Bigger Drop Now on Horizon?


Key Highlights

  • Bitcoin corrected gains and traded below the $112,000 support.
  • BTC/USD now faces resistance near a bearish trend line at $115,500 on the 4-hour chart.
  • Ethereum is consolidating gains above the $4,250 support.
  • XRP price is showing a few bearish signs below $3.00.

Bitcoin Price Technical Analysis

Bitcoin price started a downside correction below $112,500 against the US Dollar. BTC even declined below $110,000 before the bulls appeared.

Looking at the 4-hour chart, the price tested the $108,650 zone and is currently consolidating losses. If there is a recovery wave, the price could face resistance near $112,000 and the 38.2% Fib retracement level of the downward move from the $117,407 swing high to the $108,637 low.

The next key resistance is $114,000 or the 61.8% Fib retracement. The main hurdle is now forming near a bearish trend line at $115,500 on the same chart. It coincides with the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

A successful close above $115,500 might start another steady increase. In the stated case, the price may perhaps rise toward the $118,000 level. Any more gains might call for a test of $120,000.

Immediate support is $108,500. A downside break below $108,500 might send BTC toward the $106,500 support. Any more losses might send the price toward the $103,200 support zone.

Looking at Ethereum, the price traded to a new all-time high close to $5,000, and it is now consolidating gains above $4,250.

Today’s Key Economic Releases

  • EIA Crude Oil Stocks Change.
  • MBA Mortgage Applications.



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