Bitcoin Faces Rejection — Resistance Zone Caps Upside After Recent Increase

[Ben Graham]

Bitcoin price is correcting gains below $113,500. BTC could continue to move down if it stays below the $114,200 resistance.

• Bitcoin started a downside correction below the $114,200 support.
• The price is trading below $114,000 and the 100 hourly Simple moving average.
• There was a break below a bullish trend line with support at $114,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it trades below the $112,000 zone.

Bitcoin Price Starts Pullback

Bitcoin price extended gains above the $113,500 zone. BTC gained pace for a move above the $115,000 pivot level. The price even spiked above $116,200 before the bears appeared.

A high was formed at $116,309 and the price is now correcting some gains. There was a move below the $114,200 support zone. The price dipped below the 23.6% Fib retracement level of the recent wave from the $106,718 swing low to the $116,309 high.

Moreover, there was a break below a bullish trend line with support at $114,050 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $114,000 and the 100 hourly Simple moving average.

Immediate resistance on the upside is near the $113,650 level. The first key resistance is near the $114,200 level. The next resistance could be $115,000. A close above the $115,000 resistance might send the price further higher. In the stated case, the price could rise and test the $116,200 resistance. Any more gains might send the price toward the $117,500 level. The next barrier for the bulls could be $118,000.

More Losses In BTC?

If Bitcoin fails to rise above the $114,200 resistance zone, it could continue to move down. Immediate support is near the $112,000 level. The first major support is near the $111,500 level or the 50% Fib retracement level of the recent wave from the $106,718 swing low to the $116,309 high.

The next support is now near the $110,500 zone. Any more losses might send the price toward the $110,000 support in the near term. The main support sits at $108,500, below which BTC might struggle to recover in the short term.

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 – $112,000, followed by $111,500.

Major Resistance Levels – $114,200 and $115,000.