Bitcoin Recovery Builds – Can BTC Turn Momentum Into a Rally?

[Ben Graham]

Bitcoin price is attempting to recover above $112,500. BTC is now consolidating and might rise if it clears the $114,250 resistance zone.

• Bitcoin started a fresh increase above the $113,200 zone.
• The price is trading below $113,000 and the 100 hourly Simple moving average.
• There was a break above a bearish trend line with resistance at $112,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $114,250 zone.

Bitcoin Price Eyes Recovery

Bitcoin price started a fresh recovery wave from the $110,200 zone. BTC managed to climb above the $111,500 and $112,500 resistance levels.

The bulls were able to push the price above $113,000 and $114,000. Besides, there was a break above a bearish trend line with resistance at $112,300 on the hourly chart of the BTC/USD pair. The pair traded as high as $114,270 and recently started a consolidation phase.

There was a minor decline below $114,000. The price tested the 23.6% Fib retracement level of the recent move from the $110,815 swing low to the $114,270 high.

Bitcoin is now trading above $112,500 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $114,250 level. The first key resistance is near the $114,500 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 $115,500 resistance level. Any more gains might send the price toward the $116,200 level. The main target could be $118,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $114,250 resistance zone, it could start a fresh decline. Immediate support is near the $113,500 level. The first major support is near the $112,500 level or the 50% Fib retracement level of the recent move from the $110,815 swing low to the $114,270 high.

The next support is now near the $112,000 zone. Any more losses might send the price toward the $111,500 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 – $112,500, followed by $112,000.

Major Resistance Levels – $114,250 and $115,000.