Bitcoin is currently exhibiting positive momentum, trading above the $115,000 mark. The cryptocurrency has entered a consolidation phase and has the potential to rally further if it can break through the critical resistance level of $116,500.
After initiating a fresh upward movement from the $112,500 zone, Bitcoin succeeded in surpassing key resistance points at $113,500 and $114,200. The bullish sentiment was evident as the price ascended to a high of $116,743 before entering a consolidation period. Recently, a slight pullback occurred, bringing the price below the $116,000 threshold and triggering a minor decline beneath the 23.6% Fibonacci retracement level, calculated from the movement between the recent low of $110,815 to the peak at $116,743.
At present, Bitcoin is trading close to the $115,000 level, supported by the 100-hourly Simple Moving Average (SMA). However, a bearish trend line has formed, presenting resistance around the $116,000 mark on the hourly chart of the BTC/USD pair, sourced from Kraken. Immediate resistance for Bitcoin lies at the $116,000 level, with key milestones set at $116,200 and $116,750. A sustained closing above $116,750 could potentially propel Bitcoin towards the $117,500 resistance level, with further momentum possibly reaching for the $118,500 mark, and even the next barrier at $118,800.
Conversely, should Bitcoin fail to break above the $116,200 resistance zone, it may face a fresh downward trajectory. Immediate support is positioned near the $114,900 level, while substantial support rests at $113,750, coinciding with the 50% Fibonacci level from the previously mentioned swing low to high. Additional support is expected around the $113,000 level. If losses continue, the price could drop toward the $112,500 support in the near term. Critical support is identified at $110,500, below which Bitcoin could see a significant decline.
Technical indicators reveal that the hourly MACD is showing signs of losing its momentum within the bullish zone. The hourly Relative Strength Index (RSI) for the BTC/USD pair has dipped below the 50 mark, signaling a potential shift in market dynamics.
In summary, while Bitcoin’s current position above $115,000 shows promise for further gains, traders and investors remain alert to the possibility of a downturn if resistance levels do not hold steady. The market continues to oscillate with both risk and opportunity as Bitcoin navigates its latest price movements.
