WEB DESK: Bitcoin experienced a fresh surge, surpassing the $106,000 mark on Wednesday before undergoing a slight correction.
Despite this dip, the cryptocurrency is currently holding firm above $103,000, maintaining its position above the 100-hourly Simple Moving Average (SMA).
At around 9:36 AM (PKT), Bitcoin was in the red, trading at $103,804, reflecting a drop of $2,251.
A brief pullback occurred when Bitcoin dropped below a key bullish trend line with support at $106,000, based on Kraken’s BTC/USD data. However, the digital currency remains in an overall uptrend as long as it stays above $103,750 support zone.
Bitcoin found solid support around the $103,500 level, which fuelled another rise. The price moved past key levels of $104,000 and $105,000, reaching a new all-time high of $108,297.
Currently, Bitcoin is in a correction phase with a minor drop below 23.6 per cent Fibonacci retracement level which tracks the movement from the recent low of $99,250 to the peak of $108,297.
Bitcoin remains above $105,000 and the 100-hourly SMA, but immediate resistance is expected around $106,200. A break past this point could lead to a challenge of the $107,750 level.
A clear move above $107,750 may push the price towards $108,250, with further potential to test $112,000 and even reach $115,000 if the run continues.
Possible downside risks
If Bitcoin fails to surpass the $106,200 level, it could see further correction. The first support level lies at $105,000, with stronger support around $103,750, which corresponds to the 50 per cent Fibonacci retracement level.
A continued decline could bring Bitcoin down to the $102,200 support zone, and potentially as low as $100,500.
Latest rates:
BTC/USD = $103,804.80
BTC/PKR = Rs28,827,085.87
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