Bitcoin at a Crossroads: Can It Overcome Pressure or Will Downtrend Resume?
Bitcoin is currently navigating a precarious path after a recent attempt to recover losses, now facing significant resistance that could either catalyze further upward movement or precipitate a renewed slide. Traders are keenly observing key price levels as the cryptocurrency struggles to solidify its position amidst a volatile market.
Bitcoin's Uphill Battle Against Resistance
Following a period of correction, Bitcoin initiated a recovery wave, successfully climbing above the crucial $110,000 pivot level. This upward push saw BTC breach the $112,500 and $113,200 resistance marks, and even surpass the 50% Fibonacci retracement level of a significant drop from its $123,750 swing high to the $100,000 low. Despite breaking above the $114,000 resistance, the cryptocurrency now faces substantial hurdles. It is currently trading below the $116,000 mark and its 100-hourly Simple Moving Average. A notable bearish trend line is also forming on the hourly chart, presenting resistance near $119,250. Immediate resistance stands around $115,000, with subsequent key levels at $116,000 and $118,150, which coincides with the 76.4% Fib retracement. A decisive close above $118,150 could propel the price towards $120,000, with $122,500 as the next significant barrier for bulls.
The Looming Threat of a Renewed Downturn
The bullish momentum remains fragile, as Bitcoin's failure to consistently trade above the $115,000 resistance zone could trigger a fresh wave of declines. Immediate support is identified near $113,600, with the first major support resting at the $112,500 level. Should these supports fail, the price could further descend towards the $111,200 zone, and potentially test the $110,500 support in the near term. The ultimate critical support lies at $110,000; a breach below this psychological and technical threshold would indicate a significant bearish shift, potentially making short-term recovery extremely challenging. Technical indicators echo this cautious sentiment, with the Hourly MACD showing increasing momentum in the bearish zone and the Hourly Relative Strength Index (RSI) for BTC/USD dipping below the 50 level, signaling weakening buying pressure.
