Bitcoin (BTC) is showing signs of strength as it has bounced back from critical support levels and is currently trading above a historically significant resistance point. Following a steep decline at the end of the previous week, traders are eager to see if BTC can move higher, targeting around $117,000.

Recent price movements illustrate how the market is responding to notable technical points. Analysts are monitoring these figures as Bitcoin remains within a certain trading range.

Price Recovers Support, Challenges Resistance

Bitcoin has restored from a higher low close to $110,000 (on most exchanges), a critical marker highlighted in purple on the daily chart provided by Rekt Capital. This baseline has consistently served as a support level in past trends. BTC is now closing above approximately $114,300, a line that has historically represented a solid resistance.

In the last five instances where Bitcoin managed to close above this threshold after bouncing from a higher low, it surged toward $117,300.

Technical Indicators Suggest Recovery Potential

The daily relative strength index (RSI) is exhibiting a bullish divergence. Although the price has established higher lows, the RSI shows lower lows, indicating a possible shift in momentum. Currently, the RSI is recovering from oversold conditions, reinforcing the idea of a continued upward trend.

Michaël van de Poppe indicates that BTC must clear the $119,500–$120,000 area to continue its upward momentum, stressing the critical nature of this resistance zone for Bitcoin’s potential surge into new highs.