Bitcoin price started a recovery wave from $107,500. BTC is back above $115,000 but faces major hurdles near $117,500 and $120,000.
Bitcoin Price Recovery Faces Major Resistance Test
In the last analysis, we discussed the chances of a recovery wave in Bitcoin if it clears the $112,000 resistance zone. The bulls did gain some strength and pushed the price above $112,000. They even cleared a few key hurdles near $115,000.
BTC climbed above the 50% Fib retracement level of the downward move from the $123,640 swing high to the $107,540 low. Besides, there is a bullish trend line forming with support at $114,000 on the daily chart.
Bitcoin is now trading above the $115,000 pivot level and the 50-day simple moving average (blue). The current price action and the daily candle suggest more upside. However, the bulls face a lot of hurdles on the way up.
On the upside, immediate resistance is near the $116,500 level. The first major hurdle is $117,500 and the 61.8% Fib retracement level of the downward move from the $123,640 swing high to the $107,540 low.
A close above $117,500 might decrease selling pressure and increase the chance of a fresh uptrend. The next key selling zone could be $120,000. If the bulls clear the $120,000 hurdle, it could open the doors for a steady increase.
In the stated case, the bulls could attempt a move toward $123,500. The main hurdle for them could be $125,000. A daily close above the $125,000 level could spark heavy bullish moves, and BTC price might rise toward $128,500 level. Any more gains might call for a test of $132,000.
Another Downside In BTC?
If Bitcoin bulls fail to push the price above $117,500 or $120,000, there could be another bearish reaction. Immediate support is near $114,500 level and the 50-day simple moving average (blue).
The first major support is near the trend line and $114,000. A downside break and close below $114,000 might increase selling pressure on BTC. In the stated case, the price could decline toward $111,350. If there is no bounce from $111,350 or $111,200, the price could accelerate lower. In the stated case, the price could test $107,850 support. Any more losses might call for the test of $102,000.
Overall, Bitcoin is recovering losses and trading above $115,000. To continue higher and start a fresh uptrend, BTC must reclaim $117,500 and then $120,000. If not, the price could again drop below $114,000 and continue lower.
