Bitcoin (BTC) Pulls Back: Time to Buy The Dip or Brace for More Losses?

Bitcoin price traded to a new all-time high at $109,590 before it saw a downside correction. BTC must stay above $99,500 to start a fresh increase.

Bitcoin Price Dips Toward Support

In the past few days, Bitcoin price saw a decent increase above the $102,000 level and the 50-day simple moving average (blue). The bulls were able to push the price above $105,000 and $107,000. A new all-time high was formed at $109,590 before there was a pullback.

The price dipped below the $107,000 and $105,000 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $89,698 swing low to the $109,650 high.

Bitcoin price is still well above the $100,000 pivot level and the 50-day simple moving average (blue). There is also a key rising channel forming with support at $99,650 on the daily chart.

The price is now approaching the $102,000 support zone. If there is a bullish reaction, the price might face resistance near the $104,000 level. The first major resistance is seen near the $105,000 level. The next stop BTC price could be the $106,650 zone, above which the price could attempt to clear the $108,000 level.

A daily close above the $108,000 resistance zone could set the pace for a move toward the next key resistance at $110,000. Any more gains might call for a test of $112,000 or even $113,500 in the coming days.

More Losses In BTC?

Conversely, Bitcoin price might continue to move down and stay below $105,000. Immediate support on the downside is near the $102,000 level.

The first major support is near the $100,000 level and the channel’s lower trend line. It is close to the 50% Fib retracement level of the upward move from the $89,698 swing low to the $109,650 high. A downside break and close below the channel support might spark more losses.

The next support sits at $97,250. If the bulls fail to protect the $97,250 level, there could be a major pullback. In the stated case, Bitcoin could test the $94,500 support. The next key support could be $92,000.

Overall, Bitcoin is correcting gains but stays in a positive zone. To start a fresh increase, BTC must stay above the $100,000 and $99,500 support levels.

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