Bitcoin price corrected losses and traded above the $114,000 level. BTC is now struggling and might face hurdles near the $116,000 level.

• Bitcoin started a recovery wave above the $113,500 resistance level.
• The price is trading below $116,000 and the 100 hourly Simple moving average.
• There is a bearish trend line forming with resistance at $119,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it trades below the $113,500 zone.

Bitcoin Price Starts Recovery

Bitcoin price started a recovery wave after a massive liquidation event below $110,000. BTC recovered above the $111,500 and $112,000 resistance levels.

The price climbed above the 50% Fib retracement level of the sharp decline from the $123,750 swing high to the $100,000 low. The bulls even pushed the price above the $113,500 resistance level. However, there are many hurdles on the upside.

Bitcoin is now trading below $116,500 and the 100 hourly Simple moving average. Besides, there is a bearish trend line forming with resistance at $119,500 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $116,000 level. The first key resistance is near the $116,250 level. The next resistance could be $118,000 and the 76.4% Fib retracement level of the sharp decline from the $123,750 swing high to the $100,000 low.

A close above the $118,000 resistance might send the price further higher. In the stated case, the price could rise and test the $119,500 resistance and the trend line. Any more gains might send the price toward the $120,000 level. The next barrier for the bulls could be $122,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $116,000 resistance zone, it could start a fresh decline. Immediate support is near the $114,000 level. The first major support is near the $113,500 level.

The next support is now near the $113,500 zone. Any more losses might send the price toward the $112,500 support in the near term. The main support sits at $110,500, below which BTC might struggle to recover in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $113,500, followed by $112,500.

Major Resistance Levels – $116,000 and $118,000.

The cryptocurrency market seems to have found the bottom and is on a rebound. The total cryptocurrency market has jumped by 4% to $964 billion in under 24 hours.

If the current momentum continues, the market could push through the trillion-dollar mark before the end of June. Most altcoins are already making double-digit gains signaling a potential price rally in the short to medium term.

Under these conditions, two low-cost cryptocurrencies look poised for a V-shaped recovery and could potentially be rewarding to investors. The two are ApeCoin (APE) and Shiba Inu (SHIB).

ApeCoin

ApeCoin has dropped considerably since making an all-time high of $26.3 back in April to trade at $4.6. However, buyers seem to be aggressively taking APE up. In just 7-days, ApeCoin has rallied by 38%, and buying volumes are rising.

If the market continues with the current recovery, ApeCoin has what it takes to outperform the market by a considerable margin. It is a new cryptocurrency, but its adoption is growing. Recently, news emerged that Saltwater Brewery was considering accepting ApeCoin for payments. At the same time, the use case for ApeCoin in the Metaverse is growing. For instance, a game called Benji Bananas now accepts ApeCoin for transactions within the game.

With the Otherside Metaverse launch, the odds are that ApeCoin could gain even more use cases going into the future. The Metaverse, coupled with Ape NFT merchandise sales, could see ApeCoin emerge as one of the best cryptocurrencies to buy in 2022. One that could be among the first to retest all-time highs once the bear market is over.

Shiba Inu 

The Shiba Inu hype of 2021 may be gone, but this doesn’t mean that SHIB’s potential as an investment is gone. While Shiba Inu has been bearish since late 2021, SHIB has shown to be responsive to a potential bullish reversal in the broader market. When writing this article, Shiba Inu was up 10% and had recorded gains of 47% in a week. 

One of the critical factors likely to sustain Shiba Inu’s upside is the growing number of products coming up within the Shiba Inu ecosystem. For instance, Shiba Inu has recently launched a DEX.

At the same time, the Shiba Inu now has a Metaverse, which could open a whole load of use cases for the SHIB token. Shiba Inu also has deflationary tokenomics, and close to 50% of the total supply is already gone.

Based on all these factors, if upside momentum goes up across the market, SHIB could emerge as one of the big winners.

Conclusion

Buyers are back in the market, and there is a strong possibility of a V-shaped recovery in the market. If it happens, ApeCoin and Shiba Inu show signs of a potential rally that could beat most major cryptos in gains. The two also have the fundamentals to sustain a rally in the short to medium term.