Bitcoin Steadies After Rally – Is Another Powerful Breakout Just Ahead?

Bitcoin price started a strong increase and traded above $124,000. BTC is now consolidating gains and might aim for a fresh rally in the short term.

Bitcoin started a major increase above the $123,500 zone.
The price is trading above $122,000 and the 100 hourly Simple moving average.
There is a short-term bullish trend line forming with support at $123,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might continue to move up if it clears the $124,500 zone.

Bitcoin Price Starts Fresh Rally

Bitcoin price managed to stay above the $120,000 zone and started a fresh increase. BTC settled above the $121,500 resistance zone to start the current move.

The bulls were able to pump the price above the $123,500 and $124,000 levels. They even cleared the $125,000 level. A high was formed at $125,670 before there was a minor pullback to $122,250. The price is again rising and trading near the 50% Fib retracement level of the recent decline from the $125,670 swing high to the $122,320 low.

Bitcoin is now trading above $123,000 and the 100 hourly Simple moving average. Besides, there is a short-term bullish trend line forming with support at $123,000 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $124,000 level. The first key resistance is near the $124,500 level or the 61.8% Fib retracement level of the recent decline from the $125,670 swing high to the $122,320 low. The next resistance could be $125,500. A close above the $125,500 resistance might send the price further higher. In the stated case, the price could rise and test the $126,500 resistance. Any more gains might send the price toward the $128,000 level. The next barrier for the bulls could be $130,000.

Downside Correction In BTC?

If Bitcoin fails to rise above the $124,500 resistance zone, it could start a fresh decline. Immediate support is near the $123,000 level and the trend line. The first major support is near the $122,250 level.

The next support is now near the $121,500 zone. Any more losses might send the price toward the $120,000 support in the near term. The main support sits at $118,500, 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 – $123,000, followed by $122,250.

Major Resistance Levels – $124,500 and $125,500.

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