Bitcoin Battles Key Resistance Amid Recovery Efforts
Bitcoin (BTC) is currently engaged in a challenging recovery attempt, striving to bounce back from the $112,500 support level. Despite pushing past $114,000, the digital asset faces a series of formidable technical obstacles that could impede its upward trajectory towards the psychologically significant $120,000 mark.
Bitcoin's Uphill Climb
The cryptocurrency initiated a recovery wave above the $113,500 zone following a recent decline. However, it continues to trade below the $115,000 level and the 100-hour Simple Moving Average, signaling persistent bearish pressure. A critical bearish trend line with resistance at $114,800 on the hourly chart for the BTC/USD pair presents an immediate hurdle. Should Bitcoin successfully clear the $115,000 resistance zone, it could trigger a fresh surge, potentially targeting the $115,500 and $118,400 levels, which aligns with the 50% Fibonacci retracement of its recent decline. Further gains might push the price towards $120,000, with a primary target set at $121,500.
The Threat of Renewed Decline
Conversely, if Bitcoin fails to overcome the $115,000 resistance, it risks triggering a fresh decline. Immediate support for the cryptocurrency is located near the $113,500 level, followed by a major support at $112,400. A break below these levels could see the price drop towards $111,500 and subsequently $110,000. The most critical support for BTC in the near term is positioned at $108,000, below which Bitcoin could face a significant downturn.
Technical Indicators at a Glance
Examining key technical indicators reveals mixed signals. The Hourly MACD (Moving Average Convergence Divergence) for BTC/USD is observed to be losing pace within the bearish zone, suggesting a potential weakening of downward momentum. Meanwhile, the Hourly RSI (Relative Strength Index) for BTC/USD is holding above the 50 level, indicating that the asset is not yet oversold. Traders should closely monitor these indicators alongside the identified support and resistance levels for clearer insights into Bitcoin's next major move. Major Support Levels: $113,500, $111,500 Major Resistance Levels: $115,000, $115,500
