Bitcoin Price Pauses for Breath—Consolidates Gains Before Next Big Move?

Bitcoin price started a downside correction from the $123,200 zone. BTC is now consolidating below $120,000 and might attempt a fresh increase.

Bitcoin started a fresh decline from the new all-time high near $123,200.
The price is trading below $119,500 and the 100 hourly Simple moving average.
There is a rising channel forming with support 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 $120,000 resistance zone.

Bitcoin Price Hits Support

Bitcoin price started a downside correction from the new all-time high at $123,200. BTC dipped below the $122,000 and $120,000 support levels to enter a short-term bearish zone.

The price traded below the 23.6% Fib retracement level of the upward move from the $108,636 swing low to the $123,140 high. However, the downside was limited and the price found support near the $115,800 zone. The bulls protected a move below $118,000.

The price stayed above the 50% Fib retracement level of the upward move from the $108,636 swing low to the $123,140 high. Bitcoin is now trading below $119,500 and the 100 hourly Simple moving average.

There is also a rising channel forming with support at $118,200 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the $119,200 level. The first key resistance is near the $119,500 level. The next resistance could be $120,000.

A close above the $120,000 resistance might send the price further higher. In the stated case, the price could rise and test the $121,200 resistance level. Any more gains might send the price toward the $122,000 level. The main target could be $123,200.

More Losses In BTC?

If Bitcoin fails to rise above the $120,000 resistance zone, it could continue to move down. Immediate support is near the $118,200 level and the channel. The first major support is near the $116,500 level.

The next support is now near the $115,500 zone. Any more losses might send the price toward the $113,500 support in the near term. The main support sits at $110,500, below which BTC might continue to move down.

Technical indicators:

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

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

Major Support Levels – $118,200, followed by $115,500.

Major Resistance Levels – $120,000 and $122,000.

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