The price of Bitcoin is currently stabilizing above the main support level at $117,250. After a slight correction from its high of $120,000, Bitcoin is undergoing an accumulation phase and could soon witness a new upward movement if it surpasses the key resistance level at $118,600.
Current state of the Bitcoin price
The price of Bitcoin started a new rise exceeding $118,000, even reaching a strong resistance level at $119,796. However, after hitting a local peak, the price retreated below $118,500 and is now also trading below the simple moving average of 100 hours.
Currently, the hourly chart for the BTC/USD pair (data source from Kraken) shows a downward trend line forming with resistance at $118,600 - this is a key barrier that buyers need to break to return the price to a clear upward trend.
Important resistance levels
$118,500: First short-term resistance.
$118,600: Downward trend line resistance - if broken, this could be a strong bullish signal.
$119,250: The next resistance after breaking $118,600.
$119,800: Previous high - if surpassed, the price could rise to the $120,500 area.
$122,500 - $123,200: A short-term bullish target if the Bitcoin price breaks all the above resistance levels.
Important support levels
$117,250: Immediate support corresponding to the 50% Fibonacci level for the upward move from $114,733 to $119,796.
$116,650: Medium-term support level, if broken may cause strong selling pressure.
$115,950: The next support area before returning to the old bottom.
$114,500: The last key support level, and its decline may lead to a deeper drop.
$113,500: A key support area - if this level is broken, the downward trend will clearly take control.
Technical indicators
MACD (hourly frame): Gradually losing momentum in the bullish area, indicating that buying momentum is weakening.
Relative Strength Index (RSI): Currently below 50, leaning towards a slight correction or sideways trend.
Potential scenarios
🔼 Bullish scenario: If the price of Bitcoin breaks the $118,600 level, especially if it closes above $119,800, the price may target the $120,500 - $123,200 level.
🔽 Bearish scenario: If the price of Bitcoin fails to surpass $118,600 and loses support at $117,250, there is a significant chance to retest deeper support areas at $116,650 - $115,950, and it may even drop to $113,500.
Summary
The price of Bitcoin is going through a critical phase, facing upward and downward pressure around the $118,000 level. Breaking the resistance level at $118,600 will confirm the next market direction. Investors need to closely monitor price reactions at key resistance and support levels and use technical indicators to make logical decisions.