Bitcoin Battles Key Resistance Levels: Is a Deeper Correction Looming?

Bitcoin's price is at a crucial juncture, struggling to break above the $116,200 resistance zone. The cryptocurrency is currently consolidating, raising concerns that a fresh decline below the $112,500 mark could be on the horizon.

Bitcoin Price Faces Stiff Resistance

Bitcoin initiated a downward trend from the $115,500 area, now trading below both $114,000 and the 100-hourly Simple Moving Average. A significant bearish trend line, with resistance at $114,400 on the BTC/USD hourly chart (Kraken data), poses a considerable challenge. While the price did find support near $112,000 and attempted a recovery, breaking above $113,200 and $114,000, its upward movement was capped. The 23.6% Fibonacci retracement level of the recent decline from $118,918 to $112,000 was cleared, but the 50% Fib retracement acted as a strong resistance, indicating persistent bearish pressure around the $115,500 region.

The Path Forward: Upside or Downside?

Immediate resistance for Bitcoin lies near the $114,000 level. Key resistance points are identified at $115,000, followed by $115,500. A decisive close above the $115,500 resistance could signal a rally towards $116,500, with potential further gains targeting $118,000 and eventually $120,000. Conversely, a failure to surpass the $115,000 resistance zone could trigger another downturn. Initial support levels are at $113,200 and $112,500. Should these supports fail, the price may continue to fall towards $112,000, with more significant losses potentially leading to $110,500 and a major support at $108,500. Technical indicators underscore the current bearish sentiment, with the hourly MACD gaining pace in the bearish zone and the Relative Strength Index (RSI) for BTC/USD remaining below the 50 level.