- Bitcoin price has failed to find traction above the $108k for the last two weeks, but another failure does not necessarily signal bearishness.
Bitcoin price’s failure to break the $108k resistance has resulted in a sour sentiment, sending it to the $106k territory on Friday. The coin traded at $106,888 at the time of writing, down by $60 from its level 24 hours earlier. The coin is on course to register its second successive loss for the first time in five days, with buyers taming their appetite as the Federal Reserve is expected to keep interest rates unchanged for longer.
Despite its recent downturn, the downward momentum on the crypto market bellwether is likely to be limited in the near-term, with the daily RSI is at 54 as of this writing. In addition, the price action is still above the Volume Weighted Moving Average (VWMA), adding credence to the upside view. A resistance band has formed in the $108k-$110k range, and breaking into that bracket could reignite an upward rally.
Bitcoin price has spent ten of the last fourteen days above the $105k support level and the current decline is primarily driven by profit booking. The strong appetite for the coin in the ETF market attests to a bullish undercurrent that could help limit the downside. According to Coinglass data, $226.7 million worth of net inflows were registered by US-traded Bitcoin spot ETFs on Thursday.
Bitcoin Price Prediction
The momentum on Bitcoin price calls for further downside action if resistance persists at the $107,200 mark. With the seller in control, the coin will likely find initial support at $106,625. However, a stronger momentum will break below that level and could potentially test $106,040.
Conversely, going above $107,200 will signal control by the buyers. In that case, primary resistance is likely to come at $107,625. The downside narrative will be invalid if the price breaks above that level, and an extended bullishness could send the BTCUSD pair higher to test $108,070.
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