Kraken Market Analysis: Bitcoin’s V-Shaped Recovery Faces Critical $116K Resistance
Bitcoin's impressive V-shaped recovery from sub-$110,000 liquidation levels has encountered significant resistance at the $116,000 threshold, creating a crucial make-or-break moment for the cryptocurrency market. According to Kraken's latest technical analysis, BTC currently trades below both this psychological barrier and its 100-hour moving average, while facing additional overhead resistance from a descending trendline at $119,500. The recovery, which successfully surpassed the 50% Fibonacci retracement level of the recent decline from $123,000, now appears to be stalling as market uncertainty persists. Technical indicators suggest that the $116,000 zone represents a critical inflection point that could determine the next major directional move for Bitcoin. Market participants on Kraken are closely monitoring whether Bitcoin can break through this resistance level or if it will face rejection and potentially retest lower support levels. The current market structure reflects a delicate balance between bullish recovery momentum and significant technical resistance, with trading volume and market sentiment on Kraken's platform serving as key indicators for the cryptocurrency's near-term trajectory. This development comes amid broader market uncertainty, where institutional and retail traders alike are assessing the sustainability of Bitcoin's recovery rally and its implications for the broader digital asset ecosystem.
Bitcoin V-Shaped Recovery Faces Resistance at $116K Amid Market Uncertainty
Bitcoin's sharp rebound from sub-$110,000 liquidation levels has stalled NEAR critical resistance, with the $116,000 zone emerging as a make-or-break threshold. The cryptocurrency now trades below both this psychological barrier and its 100-hour moving average, while a descending trendline at $119,500 looms overhead.
Market technicians note the recovery surpassed the 50% Fibonacci retracement of the recent $123,750-to-$100,000 collapse, but faces layered resistance at $116,250 and $118,000 - the latter representing the 76.4% Fib level. Failure to hold $113,500 support could invalidate the nascent bullish structure.
Ethereum Surges Past $4,100 as Bulls Eye Next Resistance Level
Ethereum has mounted a robust recovery, breaching the $4,100 barrier with conviction. The second-largest cryptocurrency now trades above $4,150, comfortably positioned above its 100-hour moving average. This resurgence follows a brutal sell-off that briefly pushed ETH below $3,800, mirroring Bitcoin's recent volatility.
Technical indicators suggest growing bullish momentum. The breakout above a key descending trendline at $4,100 and the 50% Fibonacci retracement level from recent swings signals potential for further upside. Market participants now watch the $4,250 zone—a critical juncture representing the 61.8% Fib level of the $4,758-to-$3,423 move.
A decisive close above $4,320 could accelerate gains toward $4,400, potentially reigniting the broader altcoin market. The Kraken chart shows ETH/USD building energy for its next directional MOVE as traders weigh whether this recovery marks the start of a new leg upward or merely a corrective bounce.
