Bitcoin has recently managed to recover from significant losses, trading above the $114,000 mark. However, challenges remain as the cryptocurrency faces strong resistance near the $116,000 level. After experiencing a sharp decline, Bitcoin initiated a recovery wave, surpassing the $113,500 resistance threshold.
Currently, the price is below $116,000 and the 100-hour Simple Moving Average, indicating ongoing struggles for the digital currency. A bearish trend line has also emerged, establishing a resistance point at $119,500 on the hourly chart for the BTC/USD pair, based on data from Kraken. If Bitcoin trades below the $113,500 zone, it may continue to experience downward movement.
Following a substantial liquidation event that drove the price below $110,000, Bitcoin started its recovery by climbing above significant resistance levels at $111,500 and $112,000. The recent upswing brought the price back above the 50% Fibonacci retracement level of the dramatic fall experienced from the swing high of $123,750 to a low of $100,000. Despite these gains, the upward path is fraught with obstacles.
Trading remains below the $116,500 resistance point and the key 100-hour moving average, indicating that Bitcoin’s momentum may be stalling. Immediate resistance now lies near the $116,000 mark, with the first key resistance identified at $116,250. Should the price find a way to close above $118,000, a significant rally could follow, potentially pushing Bitcoin towards $119,500 and even the $120,000 level. Further bullish movement may lead to a challenge of the $122,500 mark.
Conversely, if Bitcoin is unable to breach the $116,000 resistance zone, there may be a fresh decline in store. Immediate support is found around the $114,000 level, with major support at the $113,500 mark. If the price fails to maintain above these levels, it could drop to $112,500, and ultimately face more significant challenges at the $110,500 support level. Falling below this point could see Bitcoin struggling to recover in the near term.
Technical indicators suggest a mixed sentiment in the market. The hourly MACD is gaining strength in the bullish zone, and the Relative Strength Index (RSI) for BTC/USD is hovering above the 50 level, hinting at a possible continuation of the bullish momentum if key resistance levels can be overcome.
