Bitcoin Price Faces Pressure: Technicals Signal Another Decline Ahead

[Ben Graham]

Bitcoin price is showing bearish signs below $113,000. BTC is struggling to recover and might start another decline below the $111,000 zone.

• Bitcoin started a recovery wave above the $109,550 zone.
• The price is trading below $112,000 and the 100 hourly Simple moving average.
• There was a break below a key bullish trend line with support at $112,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another decline if it breaks the $110,750 support zone.

Bitcoin Price Dips Again

Bitcoin price attempted a fresh recovery wave from the $108,734 low. BTC was able to climb above the $109,500 and $110,000 resistance levels.

The price surpassed the 23.6% Fib retracement level of the key drop from the $117,355 swing high to the $110,734 low. The bulls even pushed the price above the $112,500 resistance zone. However, the price struggled to stay above the $113,000 resistance.

It retreated from the 50% Fib level of the key drop from the $117,355 swing high to the $110,734 low. Besides, there was a break below a key bullish trend line with support at $112,000 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $112,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $112,400 level. The first key resistance is near the $113,000 level. The next resistance could be $113,500.

A close above the $113,500 resistance might send the price further higher. In the stated case, the price could rise and test the $114,000 resistance level. Any more gains might send the price toward the $115,500 level. The main target could be $116,500.

More Losses In BTC?

If Bitcoin fails to rise above the $113,000 resistance zone, it could start a fresh decline. Immediate support is near the $110,750 level. The first major support is near the $110,000 level.

The next support is now near the $109,500 zone. Any more losses might send the price toward the $108,500 support in the near term. The main support sits at $106,500, below which BTC might decline sharply.

Technical indicators:

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

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

Major Support Levels – $110,750, followed by $109,500.

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