Bitcoin’s price is currently consolidating within a narrowing range, setting the stage for a potential explosive rally towards 135,000 USD.
Key point:
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BTC is facing strong resistance around 120,000 USD, but the bullish momentum remains intact, indicating a possible breakout to new highs.
On Wednesday, Bitcoin encountered significant selling pressure near the 120,000 resistance mark, demonstrating the bears’ firm defense. Due to this, the market has seen a net outflow of 285.2 million USD in US-based spot exchange-traded funds (ETFs) over the past three days, according to data from Farside Investors. This shows that investors are currently cautious. However, it’s encouraging that the bulls have successfully defended the 115,000 support level, preventing the price from falling further.
Let’s explore the critical price levels presently shaping Bitcoin’s future trajectory.
Bitcoin Price Forecast
Bitcoin trades tightly between the 20-day simple moving average (SMA) at approximately 115,961 USD and the overhead resistance near 120,000 USD.
The upward sloping 20-day SMA along with the Relative Strength Index (RSI) positioned in a positive zone suggest an upward bias. Should buyers push Bitcoin above the resistance range of 120,000 to 123,218 USD, the uptrend may resume, propelling BTC towards 135,729 USD and potentially 150,000 USD later.
Conversely, a close below the 20-day SMA would hint that buyers are losing strength and taking profits. This could cause Bitcoin to drop to the neckline of an inverse head-and-shoulders pattern near 110,530 USD. Failing to hold this level might lead to increased selling pressure favoring the bears.
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On shorter timeframes, moving averages appear flat and RSI hovers near the midpoint, signifying an equilibrium between buying and selling. This tight consolidation near the all-time high reflects buyer resilience, anticipating further upside. A decisive break above 123,218 USD could signal a new upward leg.
However, if Bitcoin breaks below 115,500 USD, it may trigger panic selling among short-term traders, driving the price down to 110,530 USD, where support is expected.
This analysis is for informational purposes and does not constitute investment advice. Trading cryptocurrencies involves risk and readers should perform their own research before making any trading decisions.
