Bitcoin Surges 1% Above $108,500, Bulls Eye $109,200 Resistance

Bitcoin's price has demonstrated resilience by maintaining support above the $107,500 zone, sparking optimism among bulls for a potential fresh rally. The cryptocurrency has initiated a recovery wave, surpassing the $108,000 zone and currently trading above $108,500. This upward movement is supported by the 100 hourly Simple Moving Average, indicating a bullish trend.

Despite a recent decline below the $108,500 and $108,000 levels, Bitcoin formed a low at $107,650 and has since started a recovery. The price has moved above the $108,500 resistance zone and the 50% Fib retracement level of the downward move from the $109,700 swing high to the $107,500 low. This recovery suggests that bulls are regaining control, potentially aiming for a move above the $109,200 resistance.

Technical analysis reveals a bearish trend line forming with resistance at $109,050 on the hourly chart of the BTC/USD pair. If Bitcoin stays above the $107,500 zone, it could start a fresh increase. The first key resistance is near the $109,050 level, with the next resistance at $109,200 or the 76.4% Fib level of the downward move. A close above the $109,200 resistance might send the price further higher, potentially testing the $110,000 resistance level and even rising toward the $112,000 level, with the main target at $115,000.

However, if Bitcoin fails to rise above the $109,200 resistance zone, it could start another decline. Immediate support is near the $108,400 level, with the first major support at $108,200. The next support is near the $107,500 zone, and any more losses might send the price toward the $105,500 support in the near term. The main support sits at $103,500, below which BTC might continue to move down.

Technical indicators support the bullish outlook, with the MACD gaining pace in the bullish zone and the RSI for BTC/USD now above the 50 level. Major support levels are identified at $108,500 and $107,500, while major resistance levels are at $109,200 and $110,000. These levels will be crucial in determining Bitcoin's price trajectory in the coming days.

In summary, Bitcoin's price has shown resilience by respecting a key support zone, which has fueled optimism for a fresh rally. The cryptocurrency's recent price movements, institutional inflows, and positive market sentiment have all contributed to a bullish outlook. However, traders must remain vigilant of key resistance levels and potential rejection zones to navigate the market effectively. The overall market sentiment remains positive, with a clear and actionable game plan for bulls, as long as Bitcoin respects the support zone, the bias remains moderately bullish.