Bitcoin Price Faces Heavy Obstacles on Its Recovery Journey

Bitcoin price is attempting to recover from $112,500. BTC is back above $114,000 but faces many hurdles on the way up to $120,000.

Bitcoin started a recovery wave above the $113,500 zone.
The price is trading below $115,000 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance at $114,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start another increase if it clears the $115,000 resistance zone.

Bitcoin Price Finds Support

Bitcoin price started a fresh decline after a close below the $115,500 level. BTC gained bearish momentum and traded below the $113,500 support zone.

There was a move below the $113,000 support zone and the 100 hourly Simple moving average. The pair tested the $112,500 zone. A low was formed at $112,400 and the price is now attempting to recover toward the 23.6% Fib retracement level of the recent decline from the $124,420 swing high to the $112,400 low.

Bitcoin is now trading below $115,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $114,800 level. There is also a key bearish trend line forming with resistance at $114,800 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $115,000 level. The next resistance could be $115,500. A close above the $115,500 resistance might send the price further higher. In the stated case, the price could rise and test the $118,400 resistance level. It is close to the 50% Fib retracement level of the recent decline from the $124,420 swing high to the $112,400 low. Any more gains might send the price toward the $120,000 level. The main target could be $121,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $115,000 resistance zone, it could start a fresh decline. Immediate support is near the $113,500 level. The first major support is near the $112,400 level.

The next support is now near the $111,500 zone. Any more losses might send the price toward the $110,000 support in the near term. The main support sits at $108,000, below which BTC might take a major hit.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $113,500, followed by $111,500.

Major Resistance Levels – $115,000 and $115,500.

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