Bitcoin is showing clear signs of recovery after hitting the important support area around $112,000. If it breaks through the resistance level of $115,500, BTC could regain upward momentum and open up opportunities to advance further.

Recent Developments

After failing to maintain above the peak of $118,000, Bitcoin faced strong selling pressure, sliding below $115,000 and $113,500, even testing the support area of $112,000.

Here, buying pressure emerged, helping the price create a short-term bottom and bounce back. BTC has surpassed $113,500 and $114,200, while breaking above the 100-hour moving average (SMA 100), further strengthening the recovery momentum.

Technical Factors Supporting Uptrend

  • An upward trend line is forming with support around $114,600 on the hourly chart of the BTC/USD pair.

  • The MACD indicator on the hourly frame is expanding in the positive zone, indicating that buying pressure is dominating.

  • RSI has surpassed the 50 level, signaling that bullish momentum is forming.

Currently, Bitcoin is trading around $114,200 – $114,600, maintaining above the 100-hour SMA, setting the stage for the next breakout.

Important Resistance Levels

  • $115,500 – Nearest resistance, coinciding with the 50% Fib retracement level of the drop from $118,918 to $112,000.

  • $116,250 – The next important level, if surpassed will help consolidate the uptrend.

  • $116,800 – If a candle closes above this level, BTC may aim for $118,500, and possibly extend to $120,500 and higher targets at $121,200.

Negative Scenario to Watch Out For

If BTC cannot break through $115,500, the market may witness a new correction phase.

  • Nearest support: $114,600.

  • Next strong support: $113,500.

  • If it breaks below the $112,000 level, the price could fall to $110,500 and further down to $108,500.

Conclusion

The Bitcoin market is in a technical recovery phase after hitting a short-term bottom. Breaking above the $115,500 level will be a signal confirming the short-term uptrend, opening the opportunity to return to the $118,000 area. However, investors still need to be cautious of a correction scenario if buying pressure weakens at this important resistance level. $BTC