Bitcoin price is trying to recover above $107,500 and $108,000. BTC could continue to rise if it breaks the $109,500 resistance zone.
- Bitcoin started a new wave of recovery above the $105,000 resistance level.
- The price is trading above $108,000 and the 100 hourly simple moving average.
- There was a break above a downtrend line with resistance at $107,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it trades above the $109,500 zone.
Bitcoin price points to recovery
Bitcoin price failed to overcome the $110,000 resistance level and began a new decline. BTC fell below the $108,000 and $106,500 support levels to enter a bearish zone.
The price even fell below $105,000. A low was formed at $103,583 and the price is correcting some losses. There was a move above the 23.6% Fib retracement level of the recent decline from the high of $115,975 to the low of $103,583.
Additionally, there was a break above a downtrend line with resistance at $107,500 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $108,000 and the 100 hourly simple moving average.
The immediate resistance on the upside is near the $109,500 level. The first key resistance is near the $110,000 level. The next resistance could be $111,250 and the 61.8% Fibonacci retracement level of the recent drop from the high of $115,975 to the low of $103,583.
A close above the $111,250 resistance could push the price up further. In the given case, the price could rise and test the resistance of $112,500. Any further gains could send the price towards the $113,200 level. The next barrier for the bulls could be $115,000.
Another drop in BTC?
If Bitcoin fails to overcome the $110,000 resistance zone, it could start a new decline. Immediate support is near the $108,000 level. The first major support is near the $107,500 level.
The next support is now near the $106,200 area. Any further losses could send the price towards the $105,500 support in the near term. The main support lies at $103,500, below which BTC could struggle to recover in the short term.
Technical indicators:
MACD Hourly: The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels: $108,000, followed by $106,500.
Main resistance levels: $109,500 and $111,250.
