Bitcoin Price Sets Up for Another Move—Can the Bulls Seal the Deal?

Bitcoin price is eyeing a fresh increase above the $118,000 resistance. BTC must clear the $120,000 resistance zone to continue higher in the near term.

Bitcoin started a fresh increase after it cleared the $118,000 zone.
The price is trading above $118,500 and the 100 hourly Simple moving average.
There was a break above a bearish trend line with resistance at $118,000 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 Aims Higher

Bitcoin price started a correction phase below the $118,500 support zone. BTC dipped below the $118,000 level and tested the $116,200 zone.

A low was formed at $116,260 and the price started another increase. There was a decent move above the $118,000 and $118,500 levels. Besides, there was a break above a bearish trend line with resistance at $118,000 on the hourly chart of the BTC/USD pair.

However, the pair struggled to surpass the $120,000 resistance zone. A high was formed near $120,237 and the price is now consolidating gains near the 23.6% Fib retracement level of the upward move from the $116,260 swing low to the $120,237 high.

Bitcoin is now trading above $118,500 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 $120,200 level.

The next resistance could be $121,000. A close above the $121,000 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 $120,200 resistance zone, it could start another decline. Immediate support is near the $119,200 level. The first major support is near the $118,500 level.

The next support is now near the $118,200 zone. Any more losses might send the price toward the $116,500 support in the near term. The main support sits at $115,000, 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 above the 50 level.

Major Support Levels – $119,200, followed by $118,500.

Major Resistance Levels – $120,200 and $121,000.

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