Bitcoin Hovers Near $105,250 Amid Selling Pressure, Downside Risk Seen to $104,000
Bitcoin (BTC) experienced renewed selling pressure on Tuesday, pulling the price back to $105,250, after struggling to maintain levels above $109,000 during the previous weekend.
Bitfinex analysts in a market report suggested the price action might indicate the formation of a local resistance peak or a potential entry into a consolidation phase.
Technical Analysis: Support and Resistance Levels
The current price action is situated between a downtrend line and the moving averages, suggesting the market could see a potential range expansion in the coming days.
While rising moving averages offer slight bullish bias, the Relative Strength Index (RSI) near neutral territory suggests weakened buying conviction.
If the price fails to hold the moving averages support, further downside is predicted, potentially targeting $104,500 and extending to $100,000 if breached. This would align the price action within a bearish descending triangle pattern identified on the daily chart.
The current bearish formation might be invalidated if buyers successfully rebound off the moving averages, with an upside breakthrough of the downtrend line being a prerequisite, possibly challenging the neckline of a potential inverse head-and-shoulders pattern and targeting the former all-time high near $111,980.
On a shorter time frame, breaking below a $104,500 defense level by buyers could signal ongoing profit-taking by short-term traders. A follow-through breakdown below this level could open the door to psychological support at $100,000.
This analysis does not constitute investment advice or recommendations. Trading cryptocurrencies inherently carries significant risks, and readers are advised to conduct their own due diligence before making any decisions.
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