Bitcoin Price Analysis: Short-Term Recovery But Downside Risks Remain

Bitcoin has had a new bounce back as it surpassed the zone of 112,000 USD; however, the momentum of the increase was quickly limited. This coin reached a short term peak at 113,500 USD before turning back to fall. During the adjustment process, BTC has broken through both the 112,000 USD and 111,500 USD levels, even testing the important support zone of 110,000 USD. The most recent bottom formed around 110,039 USD and currently the price is in a sideways phase, accumulating again. On the 1-hour timeframe, Bitcoin recorded a slight bounce back above the 23.6% Fibonacci retracement level of the decline from 113,372 USD to 110,039 USD. However, the bears still show dominance as BTC has not been able to reclaim the resistance zone of 112,000 USD. At the same time, the price is also maintaining below 111,000 USD and the 100-hour SMA. The positive point is that an upward trend line is forming, supporting around 110,500 USD on the hourly chart of the BTC/USD pair. Important Resistance Zones Short term resistance: 111,250 USDMain resistance: 111,700 USD (the 50% Fib level of the most recent fall)Breaking through 112,580 USD will pave the way for Bitcoin to retest the zone of 113,500 USD, even aiming for 114,200 USD and the major target of 115,000 USD. Price Drop Scenario If Bitcoin cannot maintain the bounce back above 112,000 USD, there is a high possibility of a new fall: First support: 110,500 USD ( along the uptrend ) Important support: 110,000 USD Next support zone: 109,350 USD, further down is 108,500 USD If selling pressure is too strong, the key support level of 107,500 USD may be tested, increasing the pressure for a deeper fall. Technical Indicator MACD (hourly frame): Losing momentum in the bullish zone. RSI (hourly frame): Below the 50 threshold, reflecting the weakness of the buyers. 👉 In summary: Bitcoin is still tussling between the bulls and the bears. The short term trend will be more clearly confirmed if BTC closes above 112,580 USD or breaks below 110,000 USD. Investors should closely monitor the support/resistance levels to manage risk effectively.