Bitcoin (BTC) price started a recovery wave above $113,500, and is now approaching a major hurdle at $115,500, above which it could rally.
Bitcoin Price Approaches Key Inflection Zone
After finding bids near $108,930, Bitcoin started a recovery wave. The price recovered above the $110,500 and $112,000 levels to enter a short-term positive zone. It sparked a positive move and pushed the price above $113,500.
There was a spike above the 61.8% Fib retracement level of the downward move from the $118,000 swing high to the $108,930 low. The price is now stable above $113,500 and the 50-day simple moving average (blue).
Bitcoin is now consolidating gains near $114,200. The last two daily candles suggest an increase in bullish momentum. However, the price now approaches a key inflection point at $115,000 and $115,500.
A contracting triangle is forming with resistance at $115,500 on the daily chart. It coincides with the 76.4% Fib retracement level of the downward move from the $118,000 swing high to the $108,930 low.
If the bulls remain in action, they could attempt to clear the $115,000 and $115,500 resistance levels. If they succeed, the price could stage a decent surge. The first major hurdle above $115,500 is $118,000. A close above $118,000 might set the pace for a larger increase.
BTC could aim for a move toward $120,000 in the stated case. The next key selling zone could be near the all-time high region at $123,500 since it coincides with the 1.618 Fib extension level of the downward move from the $118,000 swing high to the $108,930 low.
Another Decline In BTC?
There could be another bearish reaction if Bitcoin bulls fail to push the price above $115,000 or $115,500. Immediate support is near $113,500 and the 50-day simple moving average (blue).
The first significant support is $112,350. A downside break and close below $112,350 might increase selling pressure on BTC. The price could decline toward $110,000 in the stated case and the triangle’s lower trend line.
The price could accelerate lower if there is no bounce from $110,000. In the said case, the cost could be $108,800 in support. Any more losses might call for the test of $107,600.
Overall, Bitcoin is attempting to recover above $113,500. To continue higher, BTC must settle above $115,000 and $115,500. If not, the price could drop below $112,350 and continue lower.
