Key Highlights
- Bitcoin corrected gains and tested the $112,000 support.
- BTC/USD is now recovering toward a bearish trend line with resistance at $117,500 on the 4-hour chart.
- Ethereum is consolidating gains above the $3,250 support.
- XRP price could start a fresh increase if it stays above $2.840.
Bitcoin Price Technical Analysis
Bitcoin price started a downside correction below $115,000 against the US Dollar. BTC tested the $112,000 support and recently started a recovery wave.
Looking at the 4-hour chart, the price climbed above the $113,500 and $114,000 levels. There was a move above the 38.2% Fib retracement level of the downward move from the $119,833 swing high to the $111,913 low.
However, the price is still below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the upside, the price could face resistance near the $116,800 level.
The next key resistance is $117,500. There is also a bearish trend line forming with resistance at $117,500 on the same chart. It coincides with the 61.8% Fib retracement level of the downward move from the $119,833 swing high to the $111,913 low.
A successful close above $117,500 might start another steady increase. In the stated case, the price may perhaps rise toward the $120,000 level. Any more gains might call for a test of $123,200.
Immediate support is near $114,000. A downside break below $114,000 might send BTC toward the $113,500 support. Any more losses might send the price toward the $112,000 support zone.
Looking at Ethereum, the bulls seem to be in control, and they might soon aim for a move above the $3,880 resistance zone.
Today’s Key Economic Releases
- US Initial Jobless Claims – Forecast 221K, versus 218K previous.
