Bitcoin Price Trades Sideways Under $120K—Will Bulls Regain Control?

Bitcoin price is correcting gains below the $121,200 zone. BTC is now consolidating and might aim for a move above the $120,500 resistance zone.

Bitcoin started a downside correction below the $121,200 zone.
The price is trading above $118,000 and the 100 hourly Simple moving average.
There is a bullish trend line forming with support at $118,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start another increase if it clears the $120,250 resistance zone.

Bitcoin Price Holds Key Support

Bitcoin price failed to extend gains above $122,250 and started a downside correction. BTC corrected gains and traded below the $121,200 support zone.

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 $122,272 high. Finally, the price spiked below the $118,500 support and tested the 100 hourly Simple moving average.

Bitcoin is now trading above $118,000 and the 100 hourly Simple moving average. There is also a bullish trend line forming with support at $118,600 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $120,000 level. The first key resistance is near the $120,250 level. The next resistance could be $120,850. A close above the $120,850 resistance might send the price further higher. In the stated case, the price could rise and test the $122,250 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 $118,600 level or the 61.8% Fib retracement level of the upward move from the $116,282 swing low to the $122,272 high. 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 – $118,600, followed by $117,800.

Major Resistance Levels – $120,250 and $120,850.

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