Bitcoin Price Wobbles — Is A Sharp Downside Move On The Horizon?

[Ben Graham]

Bitcoin price is struggling to settle above $113,500 and $114,000. BTC is now consolidating and might start another decline below $110,000.

• Bitcoin started a fresh decline after it failed to clear the $114,000 resistance level.
• The price is trading below $113,000 and the 100 hourly Simple moving average.
• There is a bearish trend line forming with resistance at $112,000 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 $110,200 zone.

Bitcoin Price Faces Hurdles

Bitcoin price started a recovery wave above the $112,500 resistance level. BTC recovered above the $112,800 and $113,000 resistance levels.

The price climbed above the 50% Fib retracement level of the recent decline from the $115,975 swing high to the $110,000 low. The bulls even pushed the price above the $113,500 resistance level. However, there are many hurdles on the upside.

Bitcoin is now trading below $113,000 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $112,000 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $112,000 level. The first key resistance is near the $113,000 level. The next resistance could be $113,700 and the 61.8% Fib retracement level of the recent decline from the $115,975 swing high to the $110,000 low.

A close above the $113,700 resistance might send the price further higher. In the stated case, the price could rise and test the $114,500 resistance. Any more gains might send the price toward the $115,250 level. The next barrier for the bulls could be $115,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $113,000 resistance zone, it could start a fresh decline. Immediate support is near the $110,200 level. The first major support is near the $110,000 level.

The next support is now near the $109,500 zone. Any more losses might send the price toward the $108,500 support in the near term. The main support sits at $107,200, 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 – $110,200, followed by $110,000.

Major Resistance Levels – $112,000 and $113,000.