Bitcoin price started a recovery wave above $114,000. BTC is back above $115,000 but faces a major hurdle near the $116,000 level.
Bitcoin Price Regains Strength
After forming a base above the $104,000 zone, Bitcoin started a steady recovery wave. There was a move above $108,000 and $110,000. The price cleared the 61.8% Fib retracement level of the downward move from the $116,130 swing high to the $103,790 low.
More importantly, BTC cleared a contracting triangle with resistance at $112,000 on the daily chart. It opened the doors for a move above $114,000 and the 50-day simple moving average (blue).
Bitcoin is now showing positive signs above $115,000 and the 76.4% Fib retracement level of the downward move from the $116,130 swing high to the $103,790 low.
The current price action and the last two daily candles suggest an increase in buying sentiment. If the bulls remain in action, BTC could rise further above $115,500. Immediate resistance on the upside is $116,000 or the last swing high at $116,130.
A close above $116,130 could open the doors for a fresh surge. The first target for the bulls above $116,130 might be $119,000 since it coincides with the 1.236 Fib extension level of the downward move from the $116,130 swing high to the $103,790 low.
If the bulls succeed in surpassing $119,000, the price could even climb above $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 $122,000. Any more gains could clear the path for a test of $123,500.
Another Pullback In BTC?
If Bitcoin fails to overcome $116,000 or $116,170, there could be a fresh decline. Immediate support is near the $115,000 level and the 50-day simple moving average (blue).
The first major support is $113,200. A downside break and close below $113,200 might increase selling pressure on BTC. In the stated case, the price could decline toward $110,500. The main support sits near $108,800. A daily close below $108,800 could start a major decline in the coming weeks. In the stated case, the bears might even aim to push the price below $103K.
Overall, Bitcoin is gaining bullish momentum above $114,000 and $115,000. The current technical structure is positive, but the bulls need to clear the $116,000 and $116,170 hurdles to push the price further higher.
