Bitcoin price retests breakout support after surpassing mid-July resistance, with the 50-period moving average reinforcing the $118.5K–$118.8K zone.
The CME gap near $117K aligns with the 4-hour 200MA, providing a confluence area that could attract short-term trading interest.
Sustained price above the breakout level keeps upward momentum toward $122K, while traders watch for possible wick movements into the CME gap.
Bitcoin is retesting the breakout zone after moving above a long-term descending resistance, with technical indicators showing a crucial short-term support level forming.
Breakout and Retest Formation
The BTC/USDT 4-hour chart from Binance shows a clear breakout above the yellow trendline drawn from mid-July highs. This move occurred on August 10 with rising volume, signaling strong buying interest. After touching a high near $122,000, the price pulled back to retest the broken resistance. The zone around $118,500–$118,800 is now acting as new support, marked on the chart as an area of interest.
Technical factors add weight to this level. The 50-period moving average is positioned just below the retest zone, offering additional reinforcement. The 200-period moving average sits further down at around $115,500, creating a deeper cushion if the current level fails. Breakout volume was notably stronger than the selling pressure during the retracement.
CME Gap and Analyst Observations
Trader Daan Crypto Trades noted that the 4-hour 200MA and EMA are aligning below the retest zone. He also reminded that a CME gap exists near $117,000, which could attract price action toward it before any upward move. A wick into this level could create a buying opportunity for strong altcoins, though he described current conditions as choppy, with Ethereum showing relative strength in the past two days.
Tegzcrypt added that traders should not panic over minor dips. He pointed to the CME gap at $117,500, suggesting that its closure could precede a push to new all-time highs, provided support holds.
Key Levels to Watch
If Bitcoin sustains price action above the yellow trendline and the 50-period moving average, a return toward $122,000 remains possible. Strength above this level could open the path for further gains.
However, a decisive close below the retest area could invalidate the breakout. This scenario would increase the likelihood of moves toward $117,100 and potentially $115,500. Traders are closely monitoring this decision zone as the market consolidates.
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