Bitcoin Price Weakens – Fresh Downside Risk If Bulls Fail Soon

[Ben Graham]

Bitcoin price is struggling to recover above $111,500. BTC is now consolidating and might decline if there is a move below the $110,000 level.

• Bitcoin started a recovery wave above the $110,500 zone.
• The price is trading below $111,000 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $110,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another decline if it stays below the $111,500 zone.

Bitcoin Price Struggles To Recover

Bitcoin price started a fresh recovery wave above the $112,000 zone but upside was limited. BTC peaked near $113,500 and started a fresh decline.

There was a move below the $112,000 and $115,000 levels. The price even tested the $110,000 zone. The recent low was formed at $110,039 and the price is now consolidating. There was a move above the 23.6% Fib retracement level of the recent decline from the $113,372 swing high to the $110,039 low.

However, the bears are active below the $112,000 level. Bitcoin is now trading below $111,000 and the 100 hourly Simple moving average. Besides, there is a bullish trend line forming with support at $110,500 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $111,250 level. The first key resistance is near the $111,700 level or the 50% Fib retracement level of the recent decline from the $113,372 swing high to the $110,039 low. The next resistance could be $112,580. A close above the $112,580 resistance might send the price further higher. In the stated case, the price could rise and test the $113,500 resistance level. Any more gains might send the price toward the $114,200 level. The main target could be $115,000.

Another Drop In BTC?

If Bitcoin fails to rise above the $112,000 resistance zone, it could start a fresh decline. Immediate support is near the $110,500 level and the trend line. The first major support is near the $110,000 level.

The next support is now near the $109,350 zone. Any more losses might send the price toward the $108,500 support in the near term. The main support sits at $107,500, below which BTC might decline sharply.

Technical indicators:

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

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

Major Support Levels – $110,500, followed by $109,350.

Major Resistance Levels – $112,000 and $112,580.