Bitcoin Battles the Red Zone: Can Bulls Mount a Comeback Above $115,000?
Bitcoin's price is grappling with a critical recovery phase, attempting to rebound from the $112,000 mark. After dipping below key support levels, the digital asset has managed to climb back above $113,200, but faces formidable resistance as it eyes a return to higher valuations.
Price Action and Immediate Hurdles
Bitcoin recently experienced a fresh decline, closing below the $115,000 level and losing bearish momentum that pushed it under the $113,200 support zone. The cryptocurrency even tested the $112,000 mark, forming a low at $112,100. Currently, BTC is making an effort to recover, aiming for the 23.6% Fibonacci retracement level of its recent downtrend, which spanned from a high of $124,420 to the recent low of $112,100. Despite this upward push, Bitcoin continues to trade below $114,000 and its 100-hourly Simple Moving Average, encountering immediate resistance around $113,500, compounded by a significant bearish trend line on the hourly chart.
Resistance Levels and Potential Upside
For Bitcoin to solidify its recovery, it must overcome several key resistance points. The first significant hurdle lies near $114,500, with the next major barrier at $115,000. A decisive break and close above the $115,000 resistance could signal a stronger bullish reversal, potentially propelling the price towards the $116,500 and then the $118,200 resistance levels. The latter aligns closely with the 50% Fibonacci retracement of the prior decline, setting the stage for a potential rally towards the main target of $120,000. Technical indicators currently show the Hourly MACD losing bearish momentum, while the Hourly RSI has moved above the 50 level, suggesting a slight shift in sentiment favoring the bulls.
Downside Risks and Critical Support
Conversely, if Bitcoin fails to clear the $114,500 resistance zone, it risks triggering another decline. Immediate support can be found near $112,500, with the primary major support level positioned around $112,000. Further losses could see the price drop towards the $110,500 zone, and potentially test the $108,250 support in the near term. The most critical support for BTC is established at $105,500; a breakdown below this level could lead to a significant price depreciation, marking a major setback for the cryptocurrency.
