Bitcoin (BTC) is showing many signs of weakness as it continuously fails in its recovery efforts above the resistance level of $113,000. The recovery momentum from the $108,734 zone seems to be running out, and the risk of a new decline to lower support zones is becoming increasingly evident.
Bitcoin Struggles in Recovery Efforts
After hitting a low near $108,734, Bitcoin bounced back and surpassed resistance levels of $109,500 and $110,000.
This recovery also helped BTC surpass the Fib 23.6% level of the decline from the peak of $117,355 to the low of $110,734.
Notably, BTC approached the resistance zone of $113,000 but was quickly rejected upon reaching the Fib 50% level of the preceding decline.
One noteworthy point is that the price has broken the upward trendline around $112,000 on the hourly chart (H1), while also slipping below the 100-hour SMA – a sign that sellers are regaining control.
Short-term Resistance Levels
Nearest resistance: $112,400
Important resistance: $113,000
Next resistance: $113,500 – $114,000
If it breaks and closes above $113,500, BTC may extend its rally to $115,500, even testing the important zone of $116,500.
Main Support Zones
If Bitcoin cannot rise above $113,000, the risk of a sharp decline will increase. The nearest support zones include:
First support: $110,750
Strong support: $110,000
Next support zone: $109,500, further down is $108,500
Key support: $106,500 – if this level is broken, BTC may face a deeper and stronger decline.
Technical Indicators
MACD (H1): Increasing downward momentum in the negative zone.
RSI (H1): Below 50, reflecting dominant selling pressure.
Conclusion
Bitcoin is currently in a 'fragile' state, unable to hold above $113,000 and continuously pressured by selling. If it does not quickly regain upward momentum, a decline to $110,000 – $109,500 is entirely possible. In a more negative scenario, BTC may retest $106,500 – the support zone that determines the trend in the short term.
👉 Investors need to closely monitor the $113,000 zone to determine whether Bitcoin can escape the short-term downtrend or continue falling to lower support zones.