Bitcoin price corrected losses and traded above the $114,000 level. BTC is now struggling and might face 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.
There is a bearish trend line forming with resistance at $119,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might continue to move down if it trades below the $113,500 zone.
Bitcoin Price Starts Recovery
Bitcoin price started a recovery wave after a massive liquidation event below $110,000. BTC recovered above the $111,500 and $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 $113,500 resistance level. However, there are many hurdles on the upside.
Bitcoin is now trading below $116,500 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $119,500 on the hourly chart of the BTC/USD pair.
Immediate resistance on the upside is near the $116,000 level. The first key resistance is near 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 might send the price further higher. In the stated case, the price could rise and test the $119,500 resistance and the trend line. Any more gains might send the price toward the $120,000 level. The next barrier for the bulls could be $122,500.
Another Decline In BTC?
If Bitcoin fails to rise above the $116,000 resistance zone, it could start a fresh 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 more losses might send the price toward the $112,500 support in the near term. The main support sits at $110,500, below which BTC might struggle to recover in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace 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.
