In the early hours, Bitcoin has once again fallen below, with support at the 106800 level, forming a second break. The price of the currency has dropped to around 105400 in the morning. From last night until today, the price has dropped nearly 3000 points, indicating a strong bearish momentum. Currently, the price is still fluctuating around the 106000 level.
Although Bitcoin has dropped 3000 points in the short term, there are potential signs of a rebound on the current chart. The 4-hour RSI has entered the oversold range, and the trading volume has decreased during the second dip, showing a weakening of bearish momentum. There is a weekly Fibonacci 38.2% support and a dense area of chips near 105400. If the price can hold above 105000 and stabilize at 106000, it may form a double bottom structure, triggering a technical recovery.
Key breakout level and strategy
If there is a volume breakout above 106800 during the Asian session (previous support turned resistance), it will confirm a reversal on the hourly chart, with a target range of 107500-108300. The funding rates in the derivatives market have turned negative, along with a narrowing of contract premiums, increasing the possibility of a short squeeze rebound. In the short term, one can take small positions to go long, but strict stop-loss should be set below 104800, and attention should be paid to market sentiment linked to the opening of the US stock market.
