Bitcoin Faces Extended Decline, Could Test $112K Before Bulls Return Bitcoin's price is currently undergoing a significant correction, trading distinctly below the $118,000 mark. The cryptocurrency continues to exhibit bearish signs, hinting at a potential slide towards the crucial $112,000 zone before any substantial resurgence of bullish momentum.
Recent Price Action and Support Levels
Following a decisive close below the $120,000 level, Bitcoin initiated a fresh downside movement. It breached key support levels, including the $118,500 and $116,500 zones, alongside the 100-hourly Simple Moving Average. The price recently established a low near $114,715 and is currently consolidating below the 23.6% Fibonacci retracement level of its decline from the $124,420 swing high. Immediate support is identified around $115,000, with the first major support located near $114,750.
Key Resistance and Potential Recovery Targets
For Bitcoin to pivot towards a recovery, it must overcome the immediate resistance at $117,000. The primary hurdle lies at $118,000, which coincides with a significant bearish trend line on the hourly chart. A sustained break and close above the $118,500 resistance could pave the way for a move towards $119,500, potentially setting the main bullish target at $121,500.
Bearish Outlook and Technical Indicators
However, if Bitcoin fails to clear the $118,000 resistance zone, it risks extending its decline. The next significant support lies near the $113,500 area. Further losses could push the price towards the $112,000 support, with a critical long-term support resting at $110,000. Technical indicators underscore the bearish sentiment: the Hourly MACD is accelerating its pace in the bearish territory, and the Hourly Relative Strength Index (RSI) for BTC/USD is trading below the 50 level.
