Bitcoin’s recent pullback
Bitcoin experienced a notable decline after failing to maintain momentum above the $117,750 level. The cryptocurrency had initially shown strength, climbing past $116,500 and even reaching $117,920 at one point. But then things shifted rather quickly.
From that high point around $117,920, BTC started moving downward. It dropped below $116,500 first, then continued falling through $115,500. The selling pressure seemed to intensify below $115,000, eventually forming a low around $114,237. That’s where things appear to be stabilizing for now, though the overall tone feels somewhat cautious.
Technical positioning
Currently, Bitcoin trades below $115,500 and sits under the 100-hour simple moving average. There’s also this bearish trend line forming with resistance around $115,200 on the hourly chart. I think technical traders are watching these levels closely.
The immediate resistance sits near $115,000, with more significant resistance around $115,250. If Bitcoin can push above $116,000—which represents the 50% Fibonacci retracement level from the recent decline—that might signal a shift in momentum. But honestly, it feels like the market needs more conviction to break through these levels.
Potential support levels
If Bitcoin fails to overcome the $116,000 resistance zone, we might see further declines. The immediate support sits around $114,250, which is where the recent low formed. Below that, there’s more substantial support near $113,500 and then around $113,250.
Should the selling pressure continue, Bitcoin could potentially test the $112,500 area. The main support level that many are watching sits at $110,500. A break below that level might trigger more significant downward movement, though that seems less likely in the immediate term.
Technical indicators
The hourly MACD shows bearish momentum gaining pace, which suggests the downward pressure might continue. Meanwhile, the RSI sits below 50, indicating weakening momentum but not necessarily oversold conditions yet.
It’s interesting to observe how these technical levels play out. Sometimes these pullbacks represent healthy corrections within broader uptrends, while other times they signal more significant trend changes. I’m leaning toward this being a temporary dip rather than a major reversal, but market conditions can shift quickly in crypto.
The key levels to watch remain $114,250 for support and $116,000 for resistance. How Bitcoin reacts around these areas will probably determine the short-term direction. For now, it feels like we’re in a consolidation phase after that recent rejection near $118,000.
