Bitcoin Faces Pressure – Could The Price Resume Its Downtrend Soon?

Bitcoin price corrected losses and traded above the $114,200 level. BTC is now struggling and might face hurdles near the $116,000 level.

• Bitcoin started a recovery wave above the $114,000 resistance level.
• The price is trading below $115,000 and the 100 hourly Simple moving average.
• There is a bearish trend line forming with resistance at $119,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it trades below the $112,500 zone.

Bitcoin price started a recovery wave above the $110,000 pivot level. BTC recovered above the $112,500 and $113,200 resistance levels.

The price climbed above the 50% Fib retracement level of the main drop from the $123,750 swing high to the $100,000 low. The bulls even pushed the price above the $114,000 resistance level. However, there are many hurdles on the upside.

Bitcoin is now trading below $116,000 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $119,250 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $115,000 level. The first key resistance is near the $116,000 level. The next resistance could be $118,150 and the 76.4% Fib retracement level of the main drop from the $123,750 swing high to the $100,000 low.

A close above the $118,150 resistance might send the price further higher. In the stated case, the price could rise and test the $119,250 resistance and the trend line. Any more gains might send the price toward the $120,000 level. The next barrier for the bulls could be $122,500.

If Bitcoin fails to rise above the $115,000 resistance zone, it could start a fresh decline. Immediate support is near the $113,600 level. The first major support is near the $112,500 level.

The next support is now near the $111,200 zone. Any more losses might send the price toward the $110,500 support in the near term. The main support sits at $110,000, below which BTC might struggle to recover in the short term.

Technical indicators:

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

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

Major Support Levels – $113,500, followed by $112,500.

Major Resistance Levels – $115,000 and $116,000.