Bitcoin Price Recovery Underway – But Momentum Tells a Different Story?

[Ben Graham]

Bitcoin price is attempting a recovery wave above $111,000. BTC is now rising and might gain pace if it clears the $112,500 resistance level.

• Bitcoin started a recovery wave above the $111,200 zone.
• The price is trading above $111,200 and the 100 hourly Simple moving average.
• There is a short-term rising channel forming with support at $111,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another decline if it stays below the $112,500 zone.

Bitcoin Price Extends Recovery

Bitcoin price started a fresh recovery wave above the $109,500 zone. BTC was able to climb above the $110,000 and $110,500 resistance levels.

The price cleared the 61.8% Fib retracement level of the key drop from the $113,457 swing high to the $107,352 low. The upward move was such that the price even surpassed the $112,000 resistance zone. Besides, there is a short-term rising channel forming with support at $111,500 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $111,000 and the 100 hourly Simple moving average. Moreover, the price is now consolidating near the 76.4% Fib retracement level of the key drop from the $113,457 swing high to the $107,352 low. Immediate resistance on the upside is near the $112,500 level.

The first key resistance is near the $112,800 level. The next resistance could be $113,450. A close above the $113,450 resistance might send the price further higher. In the stated case, the price could rise and test the $114,500 resistance level. Any more gains might send the price toward the $115,000 level. The main target could be $115,500.

Another Pullback In BTC?

If Bitcoin fails to rise above the $112,500 resistance zone, it could start a fresh decline. Immediate support is near the $111,500 level. The first major support is near the $110,500 level.

The next support is now near the $110,000 zone. Any more losses might send the price toward the $109,250 support in the near term. The main support sits at $108,500, below which BTC might decline sharply.

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 – $111,500, followed by $110,000.

Major Resistance Levels – $112,500 and $113,450.