Bitcoin's Precarious Path: Is a Rebound Imminent or a Deeper Crash Looming?
Bitcoin (BTC) finds itself at a pivotal moment, displaying consistent bearish signals below the $113,000 threshold. Despite recent attempts at a recovery, the cryptocurrency is struggling to gather significant upward momentum, with market indicators hinting at the possibility of a further downturn if crucial resistance levels are not overcome. Traders are closely monitoring key price points that could dictate Bitcoin's trajectory in the immediate future.
Bitcoin's Rocky Recovery Attempt
The leading cryptocurrency recently experienced extended losses, dipping below the $112,000 mark and testing the $108,750 support zone, ultimately hitting a low of $108,734. A modest recovery wave ensued, allowing Bitcoin to briefly move above $112,000. This rally saw a break above a significant bearish trend line with resistance at $111,350 on the hourly chart and surpassed the 23.6% Fibonacci retracement level of the recent drop from $117,354 to $110,734. However, BTC is currently trading below the $112,500 level and the 100 hourly Simple Moving Average, indicating persistent bearish pressure. Immediate resistance is found near $112,500, with the first major hurdle at $113,000, which aligns with the 50% Fibonacci retracement. A decisive close above $114,000 could pave the way for a climb towards $115,000, with a primary target set at $116,500.
The Threat of Further Decline
Conversely, should Bitcoin fail to convincingly break above the $113,000 resistance zone, a fresh wave of declines could be triggered. The immediate support on the downside is located near $110,600, followed by a major support level at $109,500. The next critical support is identified at $108,750. Any further losses beyond this point could push the price towards the $107,100 level. The most significant support lies at $105,500, and a breach below this level could accelerate Bitcoin's descent, potentially leading to a more substantial market correction. Technical indicators reinforce this cautious outlook, with the Hourly MACD losing pace in the bearish zone and the Hourly Relative Strength Index (RSI) positioned below the 50 level, signaling prevailing selling pressure.
