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Bitcoin Price Holds Support Zone – Can It Power the Next Leg Higher?

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Bitcoin price is holding the $117,250 support zone. BTC is consolidating and must clear the $118,500 resistance zone to gain bullish momentum in the near term.

  • Bitcoin started a downside correction below the $118,500 zone.
  • The price is trading near $118,000 and the 100 hourly Simple moving average.
  • There is a bearish trend line forming with resistance at $118,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might start another increase if it clears the $118,500 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price started a fresh increase above the $117,000 zone. BTC climbed above the $117,500 and $118,800 resistance levels to move into a positive zone.

The bulls were able to push the price above the $119,250 resistance. A high was formed at $119,795 and the pair is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the $114,733 swing low to the $119,795 high.

Bitcoin is now trading near $118,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $118,200 level. There is also a bearish trend line forming with resistance at $118,200 on the hourly chart of the BTC/USD pair.

Bitcoin Price Holds Support Zone – Can It Power the Next Leg Higher? - ExpertFX School

The first key resistance is near the $119,200 level. The next resistance could be $120,500. A close above the $120,500 resistance might send the price further higher. In the stated case, the price could rise and test the $122,500 resistance level. Any more gains might send the price toward the $122,500 level. The main target could be $123,200.

More Losses In BTC?

If Bitcoin fails to rise above the $118,500 resistance zone, it could start another decline. Immediate support is near the $117,250 level or the 50% Fib retracement level of the upward move from the $114,733 swing low to the $119,795 high. The first major support is near the $116,600 level.

The next support is now near the $115,550 zone. Any more losses might send the price toward the $114,600 support in the near term. The main support sits at $113,500, below which BTC might continue to move down.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $117,250, followed by $116,600.

Major Resistance Levels – $118,500 and $120,500.

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