Bitcoin Price Action Strong – Can Bulls Maintain Momentum?

[Ben Graham]

Bitcoin price is showing positive signs above $114,500. BTC is now consolidating and might rise further if it clears the $116,200 resistance zone.

• Bitcoin started a fresh increase above the $114,200 zone.
• The price is trading below $115,000 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $115,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $116,200 zone.

Bitcoin Price Gains Traction

Bitcoin price started a fresh recovery wave from the $111,200 zone. BTC managed to climb above the $112,500 and $113,500 resistance levels.

The bulls were able to push the price above $114,000 and $115,000. The price traded as high as $116,298 and recently started a consolidation phase. There was a minor decline below $115,800, but the price is still above the 23.6% Fib retracement level of the recent move from the $110,815 swing low to the $116,298 high.

Bitcoin is now trading above $114,500 and the 100 hourly Simple moving average. Besides, there is a bullish trend line forming with support at $115,000 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 $116,200 level. The next resistance could be $116,800. A close above the $116,800 resistance might send the price further higher. In the stated case, the price could rise and test the $117,500 resistance level. Any more gains might send the price toward the $118,400 level. The next barrier for the bulls could be $118,800.

Another Decline In BTC?

If Bitcoin fails to rise above the $116,200 resistance zone, it could start a fresh decline. Immediate support is near the $115,000 level and the trend line zone. The first major support is near the $113,550 level or the 50% Fib retracement level of the recent move from the $110,815 swing low to the $116,298 high.

The next support is now near the $113,000 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 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 – $115,000, followed by $113,500.

Major Resistance Levels – $116,000 and $116,200.