Bitcoin's V-Shaped Recovery Faces Hurdles – Can Bulls Sustain The Momentum? Bitcoin has recently initiated a notable V-shaped recovery, recouping significant losses and trading above the $114,000 mark after a period of intense market liquidation. Despite this bullish momentum, the cryptocurrency is currently battling key resistance levels, with its ability to maintain upward trajectory now under scrutiny.
Bitcoin's Resilient Ascent and Immediate Challenges
Following a substantial liquidation event that pushed its price below $110,000, Bitcoin demonstrated remarkable resilience, climbing past resistance levels at $111,500 and $112,000. This recovery wave saw BTC surpass the 50% Fibonacci retracement level of its sharp decline from $123,750 down to $100,000. However, the upward journey is fraught with obstacles. Bitcoin is currently trading below $116,500 and its 100 hourly Simple Moving Average, signaling a period of consolidation or potential weakness. A significant bearish trend line is also forming, providing resistance near the $119,500 level on the hourly chart.
Charting the Path Ahead: Resistance and Support
For the bulls to sustain this momentum, Bitcoin must firmly establish itself above the $116,000 resistance zone. Key immediate resistance points are identified at $116,250, followed by $118,000, which aligns with the 76.4% Fibonacci retracement level of the earlier decline. A decisive close above $118,000 could trigger further gains, pushing the price towards the $119,500 trend line and potentially targeting the $120,000 psychological level, with the next significant barrier at $122,500. Conversely, a failure to break past the $116,000 resistance could usher in a fresh decline. Critical support levels on the downside include $114,000, with a major support zone at $113,500. Should these fail, the price could revisit $113,000, then $112,000, and ultimately the main support at $110,500. Technical indicators offer a glimmer of hope: the Hourly MACD is currently gaining pace in the bullish zone, and the Hourly Relative Strength Index (RSI) is positioned above the 50 level, suggesting underlying buying interest that could yet propel Bitcoin higher.
