Bitcoin Price Eases From Highs—Bounce Back on the Horizon?

Bitcoin price is correcting gains from the $122,250 zone. BTC is now consolidating and might aim for a move toward the $120,500 resistance zone.

Bitcoin started a fresh increase above the $118,500 zone.
The price is trading above $118,000 and the 100 hourly Simple moving average.
There was a break below a key bullish trend line with support at $119,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start another increase if it clears the $120,500 resistance zone.

Bitcoin Price Aims Fresh Increase

Bitcoin price found support near the $115,500 zone and started a fresh increase. BTC was able to climb above the $117,500 and $118,800 resistance levels.

The price even cleared the $120,500 resistance to move into a positive zone. Finally, the price tested the $122,250 resistance zone. A high was formed at $122,273 and the price recently corrected some gains. There was a move below the $120,500 level.

The price dipped below the 50% Fib retracement level of the upward move from the $116,282 swing low to the $122,273 high. Besides, there was a break below a key bullish trend line with support at $119,500 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $118,000 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $119,250 level. The first key resistance is near the $120,500 level.

The next resistance could be $121,250. A close above the $121,250 resistance might send the price further higher. In the stated case, the price could rise and test the $123,200 resistance level. Any more gains might send the price toward the $124,000 level. The main target could be $125,000.

More Losses In BTC?

If Bitcoin fails to rise above the $120,500 resistance zone, it could start another decline. Immediate support is near the $118,200 level. The first major support is near the $117,800 level.

The next support is now near the $116,550 zone. Any more losses might send the price toward the $115,500 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 – $118,200, followed by $116,550.

Major Resistance Levels – $119,250 and $120,500.

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