Bitcoin price is on an upward trajectory, signaling a potential major breakout that could excite investors and traders. After successfully climbing above crucial resistance levels, Bitcoin is poised for further gains if it can conquer the next significant hurdle at $118,000.
Bitcoin Price Eyes Major Breakout
The Bitcoin price initiated a fresh rally, moving beyond the $116,000 mark. The cryptocurrency managed to surpass the $116,200 and $116,500 resistance points, indicating bullish momentum.
Recently, the bulls propelled Bitcoin above $117,500, reaching a peak of $117,920. However, a minor correction saw the price dipping to test the 50% Fibonacci retracement level from the $115,247 swing low to the $117,920 high. Despite this dip, the bulls remained active around $116,750.
Resistance Levels to Watch
Currently, Bitcoin is trading above the $116,500 level as well as the 100 hourly simple moving average. A key bullish trend line provides support at $115,800 on the hourly BTC/USD chart. Immediate resistance is present near the $117,500 level, with the first major resistance around $117,850, followed by $118,000.
A closure above $118,000 could propel Bitcoin to test the $118,500 resistance level. Continued upward momentum might see Bitcoin targeting $118,800 and possibly $119,250 in the near term.
Potential Downside Risks
If Bitcoin fails to overcome the $117,850 resistance, it might face a fresh decline. Immediate support lies near $116,550, with the first significant support around $115,800. Further declines could see Bitcoin testing the $115,250 zone, and any substantial losses might push the price down to the $114,500 support level. The main support sits at $112,500, a critical threshold that could lead to a deeper decline if breached.
Technical Indicators
- Hourly MACD – Losing pace in the bullish zone.
- Hourly RSI – Currently above the 50 mark.
Major support is seen at $116,550 and $115,800, while resistance levels are at $117,850 and $118,000.
The current Bitcoin price trend suggests a potential major breakout, keeping investors and traders on edge as they watch for key resistance levels to be tested and possibly surpassed.
