Bitcoin Bounces Back – Could Current Recovery Trigger Fresh Bullish Momentum?

[Ben Graham]

Bitcoin price found support near $108,680 and started a recovery wave. BTC is trading above $111,000 and facing hurdles near $112,500.

• Bitcoin started a fresh recovery wave above the $110,500 zone.
• The price is trading above $110,500 and the 100 hourly Simple moving average.
• There was a break above a connecting bearish trend line with resistance at $109,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it clears the $112,500 zone.

Bitcoin Price Starts Recovery

Bitcoin price managed to stay above the $108,500 zone and started a recovery wave. BTC settled above the $109,500 resistance zone to start the current move.

There was a clear move above the 50% Fib retracement level of the downward wave from the $113,940 swing high to the $108,680 low. Besides, there was a break above a connecting bearish trend line with resistance at $109,600 on the hourly chart of the BTC/USD pair.

The bulls even pushed the price above $112,000 before the bears appeared. Bitcoin is now trading above $111,500 and the 100 hourly Simple moving average.

Immediate resistance on the upside is near the $112,400 level. The first key resistance is near the $112,500 level and another trend line. The next resistance could be $113,700 or the 76.4% Fib retracement level of the downward wave from the $113,940 swing high to the $108,680 low.

A close above the $112,700 resistance might send the price further higher. In the stated case, the price could rise and test the $113,500 resistance. Any more gains might send the price toward the $114,500 level. The next barrier for the bulls could be $115,00.

Another Drop In BTC?

If Bitcoin fails to rise above the $112,500 resistance zone, it could start a fresh decline. Immediate support is near the $111,300 level. The first major support is near the $110,500 level.

The next support is now near the $109,500 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 struggle to recover in the short term.

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 – $111,300, followed by $110,500.

Major Resistance Levels – $112,500 and $112,700.