Bitcoin Smashes Past $118K – Is Stronger Bullish Momentum Now Set To Begin?

Bitcoin price started a strong increase and traded above $118,000. BTC is now consolidating gains and might correct some points in the short term.

Bitcoin started a major increase above the $116,500 zone.
The price is trading above $117,000 and the 100 hourly Simple moving average.
There is a short-term bullish trend line forming with support at $117,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might continue to move up if it clears the $119,500 zone.

Bitcoin Price Starts Fresh Surge

Bitcoin price managed to stay above the $115,000 zone and started a fresh increase. BTC settled above the $115,500 resistance zone to start the current move.

The bulls were able to pump the price above the $117,000 and $118,000 levels. The bulls even cleared the $118,800 level. A high was formed at $119,453 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $112,806 swing low to the $119,453 high.

Bitcoin is now trading above $117,000 and the 100 hourly Simple moving average. Besides, there is a short-term bullish trend line forming with support at $117,000 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $119,000 level. The first key resistance is near the $119,250 level. The next resistance could be $119,500. A close above the $119,500 resistance might send the price further higher. In the stated case, the price could rise and test the $120,500 resistance. Any more gains might send the price toward the $122,500 level. The next barrier for the bulls could be $123,00.

Pullback In BTC?

If Bitcoin fails to rise above the $119,500 resistance zone, it could start a fresh decline. Immediate support is near the $117,000 level and the trend line. The first major support is near the $116,150 level.

The next support is now near the $115,500 zone. Any more losses might send the price toward the $114,000 support in the near term. The main support sits at $113,500, below which BTC might struggle to recover in the short term.

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 – $117,000, followed by $116,150.

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

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