Bitcoin Price Gears Up for Fresh Rally After Tight Range?

Bitcoin price is eyeing a fresh increase above the $118,500 resistance. BTC must clear the $120,500 resistance zone to gain bullish momentum in the near term.

Bitcoin started a fresh increase after it cleared the $118,500 zone.
The price is trading above $118,500 and the 100 hourly Simple moving average.
There was a break above a key bearish trend line with resistance at $118,300 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 Key Upside Break

Bitcoin price started a fresh increase from the $115,000 zone. BTC climbed above the $116,500 and $117,800 resistance levels to move into a positive zone.

Besides, there was a break above a key bearish trend line with resistance at $118,300 on the hourly chart of the BTC/USD pair. The bulls were able to push the price above the $118,500 resistance. A high was formed at $119,795 and the pair is now consolidating gains above 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 above $118,800 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $119,800 level. The first key resistance is near the $120,000 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.

Another Drop In BTC?

If Bitcoin fails to rise above the $120,500 resistance zone, it could start another decline. Immediate support is near the $118,600 level. The first major support is near the $117,800 level.

The next support is now near the $117,250 zone or the 50% Fib retracement level of the upward move from the $114,733 swing low to the $119,795 high. Any more losses might send the price toward the $116,600 support in the near term. The main support sits at $115,500, below which BTC might continue to move down.

Technical indicators:

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

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

Major Support Levels – $118,600, followed by $117,250.

Major Resistance Levels – $119,800 and $120,500.

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