Bitcoin price corrected losses and traded above the USD 115,000 level. BTC is struggling now and could start another decline below $110,000.
- Bitcoin started a new decline after failing to break the $116,000 resistance level.
- The price is trading below $115,000 and the 100 hourly Simple Moving Average.
- A bearish trendline is forming with resistance at $118,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it trades below the $110,500 zone.
Bitcoin price faces resistance
Bitcoin price started a recovery wave above the USD 112,000 resistance level. BTC recovered above the USD 112,500 and USD 113,200 resistance levels.
The price climbed above the 61.8% Fib retracement level of the downward move from the $122,498 swing high to the $100,000 low. The bulls even pushed the price above the USD 115,000 resistance level. However, there are many obstacles on the positive side.
Bitcoin is now trading below $115,000 and the 100 hourly Simple Moving Average. Furthermore, a bearish trendline is forming with resistance at $118,250 on the hourly chart of the BTC/USD pair.
The immediate resistance on the upside is near the USD 114,000 level. The first major resistance is around the $115,000 level. The next resistance could be $116,000. A close above the USD 116,000 resistance could send the price higher. In the said case, the price could rise and test the $117,200 resistance and the 76.4% Fib retracement level of the downward move from the $122,498 swing high to the $100,000 low. Any further gains could send the price towards the USD 117,250 level. The next threshold for the bulls could be $118,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 116,000 resistance zone, it could start a new decline. Immediate support is near the $111,800 level. The first major support is near the $110,500 level.
The next support is now near the $110,200 zone. Any further losses could send the price towards the USD 108,500 support in the short term. The key support is at $107,000, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – $111,800, followed by $110,500.
Major resistance levels – $115,000 and $116,000.