BTCUSD – recovery extends for a second day, though upside momentum may stall below daily cloud resistance

BTCUSD extended its recovery for the second consecutive session, breaking above the 111K barrier after another strong downside rejection, when Friday’s brief dip below the ascending 200DMA and test of the 103500 zone failed to find acceptance.

A double weekly candle formation with long lower shadows reinforces the recovery prospects, while renewed risk aversion and early signs of easing tensions between the US and China add to the potential for a stronger short squeeze.

However, upside momentum remains fragile as daily studies retain a predominantly bearish setup, reflected by strong negative momentum, bearish alignment of moving averages, and a thickening daily cloud that continues to cap the price action from above.

Moreover, gold’s rebound from the $4200 area—where Friday’s 2% pullback was contained—has regained strength above $4300, which could dampen Bitcoin’s recovery and raise the risk of a dead-cat bounce pattern on the daily chart.

The 110K level now acts as solid immediate support; a sustained loss below it would soften the near-term structure and signal that recovery may be stalling, with further weakness below 107K/106K needed to confirm a deeper pullback and expose the 103K lows and the key 100K psychological zone.

Conversely, a daily close above 110K would preserve a modestly bullish bias, while a sustained move through 111K is required to reinforce the recovery. However, a decisive break above the daily Ichimoku cloud (spanning 112960–115900) remains essential for a meaningful bullish reversal.

Res: 111700; 112960; 113854; 115900
Sup: 110000, 109466; 108527; 106750