Bitcoin price corrected the losses and traded above the USD 114,000 level. BTC is struggling now and may encounter hurdles near the $116,000 level.
- Bitcoin started a recovery wave above the $113,500 resistance level.
- The price is trading below $116,000 and the 100 hourly Simple Moving Average.
- A bearish trendline is forming with resistance at $119,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it trades below the $113,500 zone.
Bitcoin Price Begins Recovery
Bitcoin price started a recovery wave after a massive liquidation below $110,000. BTC recovered above the USD 111,500 and USD 112,000 resistance levels.
The price climbed above the 50% Fib retracement level of the sharp decline from the $123,750 swing high to the $100,000 low. The bulls even pushed the price above the USD 113,500 resistance level. However, there are many obstacles on the positive side.
Bitcoin is now trading below $116,500 and the 100 hourly Simple Moving Average. Moreover, a bearish trendline is forming with resistance at $119,500 on the hourly chart of the BTC/USD pair.
The immediate resistance on the upside is near the USD 116,000 level. The first major resistance is around the $116,250 level. The next resistance could be $118,000 and the 76.4% Fib retracement level of the sharp decline from the $123,750 swing high to the $100,000 low.
A close above the $118,000 resistance could send the price higher. In the mentioned case, the price could rise and test the resistance at $119,500 and the trendline. Any further gains could send the price towards the $120,000 level. The next threshold for the bulls could be $122,500.
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 $114,000 level. The first major support is near the $113,500 level.
The next support is now near the $113,500 zone. Any further losses could send the price towards the USD 112,500 support in the short term. The key support is at $110,500, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – $113,500, followed by $112,500.
Major resistance levels – $116,000 and $118,000.