Bitcoin decline widens—market remains under pressure from risk-off trend

Bitcoin price is correcting below $112,500. If BTC falls below the $112,000 resistance, BTC could continue to fall.

• Bitcoin has started a downward correction below the $112,000 support.
• The price is trading below $112,000 and the 100 hourly simple moving average.
• The hourly chart of the BTC/USD pair (data feed from Kraken) has a bearish trendline forming resistance at $111,500.
• If it trades below the $108,800 zone, the pair could continue to fall.

Bitcoin price falls further

Bitcoin price failed to rise above the pivot level of $113,500, widening losses. BTC fell below $112,500 and $112,000 and entered the bearish zone.

This decline was such that the price traded below the 61.8% Fib retracement level of the swing low of $106,718 to high of $116,310. Additionally, a bearish trend line has formed on the hourly chart of the BTC/USD pair with resistance at $111,500.

Bitcoin is currently trading below $112,000 and its 100-hour simple moving average. If the bulls attempt a new rally, the price may face resistance near the $111,500 level and trendline. The first major resistance level is near the $112,000 level.

The next resistance level could be at $112,500. If the price closes above the $112,500 resistance level, the price could move higher. In the above case, the price could rise and test the $113,200 resistance. Any further rise could send the price towards the $113,500 level. The next hurdles for the bulls could be $115,000 and $115,500.

Further losses for BTC?

If Bitcoin fails to rise above the $112,500 resistance zone, the decline could continue. Immediate support is near the $110,000 level. The first major support is near the $108,800 level, or the 76.4% Fib retracement level of the swing low of $106,718 to the high of $116,310.

The next support is currently near the $108,000 zone. Any further losses could send the price towards the $106,500 support in the short term. The main support lies at $103,500, below which BTC may struggle to recover in the short term.

Technical indicators:

Hourly MACD – The MACD is currently pacing in the bearish zone.

Hourly RSI (Relative Strength Index) – BTC/USD’s RSI is currently below the 50 level.

Major support level – $108,800, followed by $108,000.

Key resistance levels – $111,500 and $112,000.