Bitcoin Battles to Hold Ground: Looming Downside if Key Support Fails
Bitcoin's price is currently locked in a struggle, grappling to maintain its position above the critical $111,500 mark. After a limited recovery attempt, the cryptocurrency is consolidating, facing significant downside risks if it fails to defend the psychological $110,000 level in the near term.
Bitcoin's Precarious Position and Recovery Roadblocks
Despite an initial push past the $112,000 zone, Bitcoin's upward momentum was short-lived, with price peaking near $113,500 before initiating a fresh decline. This led to a dip below $112,000 and $115,000, even testing the $110,000 support. The recent low was established at $110,039, and the asset is now consolidating. While a move above the 23.6% Fib retracement of the recent swing high to low offered a glimmer of hope, bears remain firmly in control below the $112,000 level. BTC is currently trading under $111,000 and the 100 hourly Simple Moving Average, with a crucial bullish trend line providing support at $110,500 on the hourly chart. Immediate resistance for Bitcoin lies near $111,250, followed closely by the $111,700 mark, which coincides with the 50% Fib retracement level. Overcoming the $112,580 resistance is essential for any sustained upward movement, potentially paving the way for tests of $113,500 and even $114,200, with a major target at $115,000.
Threat of Further Decline and Critical Support Levels
Should Bitcoin fail to breach the $112,000 resistance zone, a fresh decline appears imminent. Key immediate support exists around $110,500 and the aforementioned trend line, with major support firmly placed at $110,000. A break below this could see the price drop towards the $109,350 zone, and potentially to $108,500 in the near term. The ultimate critical support level is identified at $107,500, a breach of which could trigger a sharp and significant sell-off. Technical indicators reinforce this cautious outlook: the Hourly MACD is losing bullish momentum, while the Hourly Relative Strength Index (RSI) for BTC/USD has dipped below the 50 level, signaling weakening buying pressure. Traders are advised to monitor these levels closely as Bitcoin navigates this critical juncture.
