Bitcoin shows promising signs of recovery after testing crucial support, sparking optimism for an upward surge. The cryptocurrency bounced off the $112,000 mark and is now consolidating above key levels, setting the stage for a potential bullish breakout.
Bitcoin's Upward Trajectory
Following a recent downward move from the $118,000 zone, Bitcoin found robust support at $112,000, successfully averting a deeper bearish dive. The price has since climbed above $114,000 and is currently trading above its 100-hourly Simple Moving Average. A significant bullish trend line has also emerged on the hourly chart at $114,600, reinforcing the current rebound. This positive price action, coupled with the Hourly MACD gaining pace in the bullish zone and the RSI moving above the 50 level, suggests a growing upward momentum. The immediate resistance for Bitcoin stands near $115,500, which aligns with the 50% Fibonacci retracement of its recent downturn. A decisive break above this level could propel BTC towards the $116,250 and $116,800 resistance points. Should it clear $116,800, the price might aim for $118,500, with a more ambitious target set at $121,200, signaling a potentially explosive rebound.
Potential Downside Risks
However, if Bitcoin fails to overcome the $115,500 resistance zone, it could initiate another decline. Immediate support is anticipated around $114,600, followed by a more significant support at $113,500. A breach of these levels could see Bitcoin retesting the $112,000 zone. Further losses might push the price towards $110,500, with the main critical support lying at $108,500, below which a continued downward trend is possible.
