The leading cryptocurrency tested support at $112,400 before recovering above $114,000,
Yet faces multiple hurdles on the path toward $120,000.
According to market data from Kraken, Bitcoin slipped sharply below $115,500 earlier this week,
dropping under $113,000 and the 100-hourly Simple Moving Average (SMA).
The decline found temporary relief near $112,500, where buyers stepped in to push BTC back toward resistance zones.
Resistance Levels to Watch
On the upside, immediate resistance is located at $114,800, aligned with a bearish trend line forming on the BTC/USD hourly chart.
A decisive close above $115,000 could open the door to a test of $115,500.
If bulls manage to flip this level into support, Bitcoin could target $118,400, corresponding to the 50% Fibonacci retracement of the decline from the $124,420 high to the $112,400 low.
A further breakout might fuel a rally toward $120,000, with an extended target at $121,500.
Risk of Fresh Decline
However, failure to reclaim $115,000 could spark renewed selling pressure.
Immediate downside support sits at $113,500, followed by $112,400.
If bears regain control, Bitcoin risks sliding toward $111,500, with deeper losses potentially dragging the price
down to $110,000 or even $108,000 in the near term.
Technical Outlook
Technical indicators reflect the market’s uncertainty. The hourly MACD is losing strength in the bearish zone, while the Relative Strength Index (RSI) for BTC/USD is hovering slightly above 50, signaling indecision between buyers and sellers.
Bitcoin’s near-term direction now hinges on whether bulls can break through the $115,000 and $115,500
resistance levels or if bears will enforce a deeper correction toward critical support.
