Bitcoin Price Battles Key Resistance Near $113K
Bitcoin finds itself at a critical juncture, struggling to maintain its recent recovery above the $112,500 mark. The leading cryptocurrency is currently consolidating, and its immediate price action will determine whether bulls can break through crucial resistance or if a renewed downtrend is on the horizon.
Navigating Key Hurdles
Following a fresh recovery wave from the $110,000 zone, Bitcoin managed to climb past initial resistance levels at $110,800 and $111,200. This bullish push successfully surpassed the 50% Fibonacci retracement level of a previous decline, originating from a high of $113,372 to a low of $110,039. However, the bears remain active, aggressively defending the $112,600 zone and preventing further upward movement. The 76.4% Fib retracement level has also acted as a strong barrier, restricting Bitcoin's gains. Currently, BTC is trading above $111,000 and the 100 hourly Simple Moving Average, supported by a significant bullish trend line at $110,800 on the hourly chart.
Path to Breakthrough or Potential Decline
For Bitcoin to extend its recovery, it must decisively close above the $112,550 resistance. Success here could open the path towards testing the $113,000 level, with subsequent targets at $114,200 and a primary objective of $115,000. Conversely, if Bitcoin fails to overcome the $112,550 resistance zone, a fresh decline could commence. Immediate support lies near the $110,800 trend line, with the first major support at $110,500. Further losses could see the price drop towards the $108,800 support, and a breakdown below the main support at $107,500 could trigger a sharp sell-off.
Technical Outlook
The current technical indicators suggest a cautious market sentiment. The hourly MACD is showing signs of losing its bullish momentum, while the Relative Strength Index (RSI) for BTC/USD is positioned below the 50 level, indicating a potential weakening of bullish sentiment. Traders should closely monitor the critical resistance levels at $112,550 and $113,000, as well as the key support zones at $110,800 and $110,000 for impending market direction changes.
