Bitcoin Price Recovery Stalls, Can Bulls Overcome the Key Resistance?

Bitcoin price is showing bearish signs below $113,500. BTC is struggling to recover and might face hurdles near the $113,000 zone.

Bitcoin started a fresh decline below the $111,400 zone.
The price is trading below $111,500 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance at $111,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start another increase if it clears the $112,500 resistance zone.

Bitcoin Price Attempts Recovery

Bitcoin price started a fresh decline after a close below the $112,500 level. BTC gained bearish momentum and traded below the $112,000 support zone.

There was a move below the $110,500 support zone and the 100 hourly Simple moving average. The pair tested the $108,750 zone. A low was formed at $108,734 and the price recently started a recovery wave. There was a move above the $111,200 level.

The price surpassed the 23.6% Fib retracement level of the recent decline from the $117,354 swing high to the $110,692 low. Bitcoin is now trading below $111,500 and the 100 hourly Simple moving average.

Immediate resistance on the upside is near the $111,500 level. There is also a key bearish trend line forming with resistance at $111,550 on the hourly chart of the BTC/USD pair. The first key resistance is near the $112,000 level. The next resistance could be $113,000 or the 50% Fib retracement level of the recent decline from the $117,354 swing high to the $110,692 low.

A close above the $113,000 resistance might send the price further higher. In the stated case, the price could rise and test the $114,200 resistance level. Any more gains might send the price toward the $115,500 level. The main target could be $116,500.

Another Drop In BTC?

If Bitcoin fails to rise above the $111,550 resistance zone, it could start a fresh decline. Immediate support is near the $110,500 level. The first major support is near the $109,200 level.

The next support is now near the $108,500 zone. Any more losses might send the price toward the $106,500 support in the near term. The main support sits at $105,500, below which BTC might accelerate lower.

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 below the 50 level.

Major Support Levels – $108,500, followed by $106,500.

Major Resistance Levels – $111,500 and $113,000.

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