Bitcoin reversed after failing to hold $121K and now trades near $117K within an unfolding wave C pattern.
Fibonacci zones near $120K and $118K have acted as major price pivots in the current correction setup.
If BTC breaks $117K support the next test may be $114K before the hourly pattern can resume upward strength.
Bitcoin is trading at $117,776 after failing to sustain above $121,219, where the 0.786 Fibonacci level rejected further upside. The hourly chart from Bitstamp shows a completed five-wave impulse followed by an ongoing A-B-C corrective phase. The projected structure indicates potential downside into the $114,400 to $115,250 support zone before a bullish recovery attempt.
Source: X
The current structure suggests that Bitcoin has completed Wave 5 near $121,219 and entered a corrective path with Wave A bottoming at $118,362. A temporary bounce formed Wave B, peaking around $119,189 before dropping again into Wave C. Market momentum, as seen in the RSI and Stochastic indicators, remains weak, suggesting near-term pressure continues.
Visible range volume profiles show a high concentration of trades between $117,000 and $118,500, forming a potential demand zone. This cluster supports the view that BTC could attempt consolidation before choosing its next direction. RSI is near oversold, indicating possible exhaustion of the current leg down.
Fibonacci Retracement Marks Resistance and Short-Term Pullback
Bitcoin faced rejection near the 0.786 retracement level at $121,219. This level aligns with the top of the impulse wave structure. Price action reversed after struggling to break through this resistance band.
Further confirmation came at the 0.618 level, around $120,023, which saw significant seller activity. BTC dropped rapidly from this zone, falling below the 0.382 level marked at $118,362. This area is now being tested as a potential lower support in the corrective structure.
These retracement levels are significant in mapping short-term behavior. Traders observe such zones to anticipate turning points. The rapid reaction near 0.786 and 0.618 suggests strong resistance for now. Unless BTC reclaims these zones, the corrective trend remains intact.
Corrective Wave Structure Suggests Retest Before New Leg Up
The current structure appears to follow the Elliott Wave A-B-C correction pattern. Wave A and Wave B are confirmed with price targets. Wave C is still in progress and may find a base near $114,400.
The hand-drawn path in the chart outlines a possible bounce and retest from this lower zone. If buyers return, BTC may target $120,000 again. This path would complete the corrective pattern and signal potential for another bullish impulse.
Volume analysis shows strong interest around $117,000, suggesting short-term traders are monitoring this area. Support here could limit further losses. Stochastic RSI is also near the lower band, pointing to a possible momentum reversal.
Hourly indicators across MACD, RSI, and volume spikes align with a common reset phase. Should BTC hold above $115,000, it may build the structure for a new five-wave move upward. Traders are expected to watch how Wave C concludes to plan the next entry.
Momentum Indicators Suggest Short-Term Weakness with Potential Bounce Ahead
The RSI indicator on the hourly timeframe shows a breakdown from a local range, with the current value trending downward. This breakdown aligns with the Wave C move, which is yet to complete. The RSI hand mark highlights a pending bounce opportunity if support holds.
Volume activity increased during the last dip, showing potential accumulation. The market reaction to these zones will define the next impulse. Bitcoin needs to stabilize above $117,000 for bullish momentum to return.
The MACD histogram shows early signs of potential flattening, which may support a minor bullish divergence. If confirmed, BTC could rise toward the mid-Fibonacci zones again. For now, the market watches the $114,400 to $117,000 band closely.
