Bitcoin price recovered sharply after a major crash of over $15,000. BTC is back above $112,000 but faces a key hurdle at $117,500.
Bitcoin Price Holds Key Uptrend Support
In the past few days, Bitcoin saw nasty moves from the $126,110 high. BTC crashed over $15,000 in a major liquidation event. It even spiked below the key support at $110,000.
However, there was a sharp recovery wave and the price reclaimed the $110,000 pivot level, with no daily close. The price is back above the $112,500 resistance. There was a move above the 50% Fib retracement level of the recent crash from the $126,110 swing high to the $103,310 low.
Bitcoin is now consolidating gains above the $113,500 level and the 50-day simple moving average (blue). The current price action is positive, but the bulls face an uphill task.
The current daily candle also shows a few signs of trend exhaustion. If there is a pullback, the price might test the $114,000 support zone and the 50-day simple moving average (blue). The first major support is $113,000. A downside break and close below $113,000 might increase selling pressure on BTC.
In the stated case, the price could decline toward $112,000. The main support sits near $110,000. There is also a major bullish trend line in place at $110,000 on the daily chart. A daily close below the trend line support could start a major decline in the coming weeks.
Another Increase In BTC?
After Bitcoin completes the current consolidation or a downside correction, there could be a fresh increase. Immediate resistance on the upside is $116,000. The first major hurdle is $117,500 and the 61.8% Fib retracement level of the recent crash from the $126,110 swing high to the $103,310 low.
If the bulls remain in action, they could attempt to clear $117,500. If they succeed, the price could stage a fresh surge. The first stop for the bulls above $117,500 could be $120,000. A close above $120,000 might set the pace for a larger increase. In the stated case, BTC could aim for a move toward $125,000.
Overall, Bitcoin is consolidating gains after a major crash below $110,000. The current technical structure suggests that BTC could correct some gains, but it might start a fresh increase unless there is a close below $110,000.
