Support Zones in Focus: Will Bitcoin Hold or Fold?

After a strong burst last week that propelled Bitcoin above $118,667, the world's largest cryptocurrency looks to be resting. Bitcoin is now selling at $117,953, down from its high.

Support Zones Could Influence Bitcoin's Next Big Move

RLinda's technical analysis starts with Bitcoin's latest record high. Bitcoin seems to be consolidating, but no peak has been established. The market structure supports bullish continuation, particularly as Bitcoin is entering a realization phase after a two-month consolidation zone.

Bitcoin is trading close above a support region below $117,500 on the 1-hour candlestick price chart. If Bitcoin breaks this zone, it might start a series of corrections that could push the price to $115,500, $114,300, or even $111,800, its all-time high.

Below that, the 0.5 and 0.705 Fibonacci levels at $113,031 and $111,960 may provide brief support. Bulls may rally at $110,400, the final big defensive purchase zone. If Bitcoin loses $115,500 support, it might fall below $110,000 before finding another strong buy support zone.

However, Bitcoin may rise beyond $118,000 and reach $125,000 under certain scenarios. Bitcoin's daily close over $118,400 and $118,900 will determine the rally's continuance. She said a daily closing above these prices would indicate a “breakout of structure.” This would indicate a shift from consolidation to impetuous growth.

Both negative and positive outlooks rely on how Bitcoin responds at support around $116,700 or resistance above $118,400 before making a move. However, as with prior rallies this cycle, consolidation following last week's gain might extend weeks or months.

The Long-Term Holder Net Unrealized Profit and Loss (NUPL) statistic from Glassnode puts Bitcoin's long-term profitability sentiment at 0.69. Even though Bitcoin hit a record high, this is below the 0.75 threshold associated with euphoria.

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