Bitcoin Bulls on Edge – Is Another Sharp Decline Coming?

[Ben Graham]

Bitcoin price is struggling to recover above $112,000. BTC is now consolidating and might decline if there is a move below the $110,800 level.

• Bitcoin started a fresh decline from the $113,200 zone.
• The price is trading below $111,500 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $111,000 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 Remains At Risk

Bitcoin price started a fresh recovery wave from the $110,100 zone. BTC managed to climb above the $110,800 and $111,500 resistance levels.

The bulls were able to push the price above $112,500 and $113,000. However, the bears remained active near the $113,200 zone and prevented more gains. There was a fresh bearish reaction, and the price traded below $112,000. A low was formed at $110,820 and the price is now consolidating losses.

Bitcoin is now trading below $111,500 and the 100 hourly Simple moving average. Besides, there is a bullish trend line forming with support at $111,000 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the $111,700 level. The first key resistance is near the $112,000 level. It is near the 50% Fib retracement level of the recent decline from the $113,200 swing high to the $110,820 low.

The next resistance could be $112,300 or the 61.8% Fib level of the recent decline from the $113,200 swing high to the $110,820 low. A close above the $112,300 resistance might send the price further higher. In the stated case, the price could rise and test the $113,200 resistance level. Any more gains might send the price toward the $114,200 level. The main target could be $115,000.

More Losses In BTC?

If Bitcoin fails to rise above the $112,300 resistance zone, it could start a fresh decline. Immediate support is near the $111,000 level and the trend line. The first major support is near the $110,800 level.

The next support is now near the $110,200 zone. Any more losses might send the price toward the $108,800 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 – $111,000, followed by $110,200.

Major Resistance Levels – $112,000 and $112,300.