Bitcoin Price Struggles to Rebound – Signs of a Bigger Crash Ahead?

[Ben Graham]

Bitcoin price is showing bearish signs below $113,000. BTC is struggling to recover and might start another decline below the $110,500 zone.

• Bitcoin started a recovery wave from the $108,750 zone.
• The price is trading below $112,500 and the 100 hourly Simple moving average.
• There was a break above a key bearish trend line with resistance at $111,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $113,000 resistance zone.

Bitcoin Price Attempts Fresh Increase

Bitcoin price extended losses after close below the $112,000 level. BTC gained bearish momentum and traded below the $111,500 support zone.

There was a move below the $110,500 support zone and the 100 hourly Simple moving average. The pair tested the $108,750 zone. A low was formed at $108,734 and the price recently started a recovery wave. There was a move above the $112,000 level.

The price surpassed the 23.6% Fib retracement level of the key drop from the $117,354 swing high to the $110,734 low. Besides, there was a break above a key bearish trend line with resistance at $111,350 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $112,500 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $112,500 level. The first key resistance is near the $113,000 level or the 50% Fib retracement level of the key drop from the $117,354 swing high to the $110,734 low. The next resistance could be $114,000.

A close above the $114,000 resistance might send the price further higher. In the stated case, the price could rise and test the $115,000 resistance level. Any more gains might send the price toward the $115,500 level. The main target could be $116,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $113,000 resistance zone, it could start a fresh decline. Immediate support is near the $110,600 level. The first major support is near the $109,500 level.

The next support is now near the $108,750 zone. Any more losses might send the price toward the $107,100 support in the near term. The main support sits at $105,500, below which BTC might accelerate lower.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $110,600, followed by $109,500.

Major Resistance Levels – $112,500 and $113,000.