The price of Bitcoin is attempting to bounce back from $112,500. BTC has risen above $114,000 but encounters several obstacles on its climb to $120,000.
- Bitcoin has initiated a recovery wave over the $113,500 threshold.
- The price remains below $115,000 and the 100-hour Simple Moving Average.
- A significant bearish trend line is forming, showing resistance at $114,800 on the hourly chart of the BTC/USD pair (data sourced from Kraken).
- The pair could potentially see another uptrend if it breaks through the $115,000 resistance zone.
Bitcoin Price Gains Support
After closing below $115,500, Bitcoin initiated a new downward trend. BTC gathered bearish momentum, trading below the $113,500 support zone.
The price dipped below the $113,000 support level and the 100-hour Simple Moving Average. The pair tested the $112,500 area, reaching a low of $112,400, and is now trying to recover toward the 23.6% Fib retracement level of the recent drop from the $124,420 swing high to the $112,400 low.
Bitcoin is currently trading beneath $115,000 and the 100-hour Simple Moving Average. Immediate upward resistance lies around the $114,800 mark, where a bearish trend line is also forming on the hourly chart of the BTC/USD pair.
The first crucial resistance level is around $115,000, with the next level potentially being $115,500. A close above $115,500 could propel the price even higher, potentially testing the $118,400 resistance level, which aligns closely with the 50% Fib retracement of the recent drop from the $124,420 swing high to the $112,400 low. If gains continue, the price may aim towards the $120,000 level, with the primary target set at $121,500.
Could There Be Another Decline in BTC?
If Bitcoin cannot break above the $115,000 resistance zone, it may begin another downward movement. Immediate support is located near the $113,500 level, with the first major support around $112,400.
The next support is now near the $111,500 zone. Further losses could bring the price down to the $110,000 support level in the near future, while the main support sits at $108,000, below which BTC could face a significant downturn.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum within the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 mark.
Major Support Levels – $113,500, followed by $111,500.
Major Resistance Levels – $115,000 and $115,500.
