Bitcoin Price Shows Signs of Recovery Above $114,200
Bitcoin has initiated a recovery phase, trading above the $114,200 mark after maintaining support above $112,000. The cryptocurrency managed to surpass key resistance levels, signaling renewed bullish momentum in the market.
Strong Bullish Momentum Pushes Bitcoin Higher
After holding steady above the $112,000 zone, Bitcoin began an upward move, breaking through the $113,200 resistance level. The price climbed past $114,000 and $114,200, even clearing the $114,500 threshold. The highest point reached during this rally was $114,770, after which the price entered a consolidation phase.
Despite a slight pullback below the 23.6% Fibonacci retracement level of the recent upward swing—from $108,677 to $114,771—Bitcoin remains firmly above $114,200 and the 100-hour simple moving average. Additionally, a short-term bullish trend line is forming, providing support near $113,300 on the hourly chart.
Key Resistance Levels to Watch
The immediate resistance lies close to $114,750, with the next significant barrier at $115,000. Should Bitcoin manage to close above $115,500, it could trigger further gains, potentially testing the $116,500 resistance. Continued upward momentum might even push the price toward $117,500, with $118,000 acting as a subsequent hurdle for bulls.
Potential for a Downward Correction
If Bitcoin fails to break above the $114,750 resistance zone, a fresh decline could ensue. The first support level to monitor is the trend line near $113,300, followed by a more substantial support at $112,200. Further losses might drive the price down to $111,750 and possibly $111,000 in the short term. The critical support level stands at $110,500, below which Bitcoin could face challenges in recovering quickly.
Technical Indicators Signal Bullish Bias
The hourly MACD indicator is gaining momentum in the bullish zone, while the Relative Strength Index (RSI) remains above the 50 mark, suggesting positive market sentiment. Key support levels are identified at $113,300 and $112,200, whereas resistance is expected near $114,750 and $115,000.
Overall, Bitcoin is showing signs of strength but remains at a crucial juncture where breaking above resistance levels could lead to further upside, while failure to do so may result in a short-term pullback.
