Bitcoin price is currently experiencing a consolidation phase below the $120,500 mark, raising questions about its next move. Despite the recent downside correction, Bitcoin remains above key support levels, which could hint at a potential bullish resurgence.
Bitcoin Price Holds Key Support Levels
The Bitcoin price faced a notable correction after failing to maintain momentum above the $122,250 threshold. This adjustment saw the price dip below the $121,200 support zone and the $120,500 level. Furthermore, Bitcoin briefly tested the 50% Fibonacci retracement level, spanning from the $116,282 low to the $122,272 peak, before finding support around $118,500.
Currently, Bitcoin is trading above $118,000, supported by the 100 hourly simple moving average. A bullish trend line is forming with support at $118,600, which could serve as a launchpad for a new upward movement. Immediate resistance looms near $120,000, with the first major barrier at $120,250.
Potential Bullish Breakout
If Bitcoin manages to breach the $120,250 resistance, it could pave the way for a rise towards the $120,850 level. Surpassing this could lead to a test of the significant $122,250 barrier. Any further gains might propel the price towards the $124,000 mark, with the ultimate target being $125,000.
Risks of More Losses in Bitcoin Price
However, if Bitcoin fails to clear the $120,500 resistance, the price may face another decline. Immediate support is at $118,600, aligning with the 61.8% Fibonacci retracement level. The first critical support lies at $117,800, followed by $116,550. A drop below these levels could see Bitcoin falling to $115,500, with the main support at $113,500, potentially triggering further downward movements.
Technical Indicators:
- Hourly MACD: Currently losing pace in the bullish zone.
- Hourly RSI: Below the 50 level, indicating potential bearish momentum.
- Major Support Levels: $118,600, $117,800.
- Major Resistance Levels: $120,250, $120,850.
As market participants keenly observe these levels, the Bitcoin price remains poised for either a bullish breakout or a bearish breakdown, depending on prevailing market conditions.
