Bitcoin Pauses Below Key Levels – Can It Regain Momentum For A Rally?

[Ben Graham]

Bitcoin price corrected gains and traded below the $125,000 pivot level. BTC is now consolidating near $122,200 and might struggle to rally above $125,000s.

• Bitcoin started a downside correction below the $124,000 level.
• The price is trading below $123,500 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $122,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it trades below the $122,000 zone.

Bitcoin Price Dips Again

Bitcoin price extended gains above the $125,000 zone. BTC climbed above the $125,250 and $125,500 resistance levels before the bears appeared.

A new high was formed at $126,198 before there was a correction. The price dipped below the $123,000 support zone and tested the $120,500 region. A low as formed at $120,694 and the price recently recovered above the 50% Fib retracement level of the recent decline from the $126,191 swing high to the $120,694 low.

However, the bears are still active near $124,000. Bitcoin is now trading below $123,500 and the 100 hourly Simple moving average. Besides, there is a bullish trend line forming with support at $122,200 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $123,450 level. The first key resistance is near the $124,000 level and the 61.8% Fib retracement level of the recent decline from the $126,191 swing high to the $120,694 low.

The next resistance could be $124,850. A close above the $124,850 resistance might send the price further higher. In the stated case, the price could rise and test the $125,500 resistance. Any more gains might send the price toward the $126,000 level. The next barrier for the bulls could be $126,200.

More Losses In BTC?

If Bitcoin fails to rise above the $124,000 resistance zone, it could start a fresh decline. Immediate support is near the $122,000 level. The first major support is near the $121,200 level.

The next support is now near the $120,500 zone. Any more losses might send the price toward the $118,500 support in the near term. The main support sits at $116,800, below which BTC might struggle to recover in the short term.

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 – $122,000, followed by $121,200.

Major Resistance Levels – $124,00 and $124,850.