Bitcoin’s recent price action has been a bit of a rollercoaster. After dipping below $100,000 last weekend, it bounced back, aiming for $108,000. But it hit a wall.
Strong Resistance and Bearish Signals
A crypto analyst, Helen, pointed out key resistance levels around $108,200 and $108,800. Bitcoin has repeatedly failed to break through these levels, suggesting that bears (those betting against Bitcoin’s price) are still in charge. The recent price consolidation below support isn’t necessarily a good sign; it indicates hesitation in the market, increasing the chances of a bearish reversal.
The Potential for a Drop
This means the recent rally might be short-lived, and we might not see new all-time highs anytime soon. Unless Bitcoin decisively breaks through the $108,000 resistance and heads towards $110,000, a further decline is likely.
Helen predicts a drop to the next support level at $103,000. This aligns with a declining trendline from June’s highs. If things go south like last weekend, Bitcoin could plummet below $100,000 again – a 10% crash that would retest June’s lows. The ongoing uncertainty surrounding the Middle East conflict adds to the risk.
A Glimmer of Hope?
However, there’s still a chance for a breakout if momentum picks up. Bitcoin is only about 5% away from its all-time high of $111,900. But for now, the altcoin market remains weak.