Bitcoin Eyes Further Gains After Powerful Rally, Could $130,000 Be Next?
Bitcoin has demonstrated impressive strength, initiating a significant rally that saw its price climb above the $124,000 mark. While currently consolidating these gains, the cryptocurrency appears to be gathering momentum for a potential fresh breakout, leading analysts to ponder whether a powerful surge towards new highs is just on the horizon.
Recent Momentum and Immediate Price Action
The digital asset recently experienced a strong upward move, successfully pushing past the $123,500, $124,000, and even the $125,000 resistance levels, peaking at $125,670. Following this impressive rally, Bitcoin underwent a minor pullback, finding support around $122,250. It has since resumed its upward trajectory, trading comfortably above $123,000 and the 100-hourly Simple Moving Average. A critical short-term bullish trend line, offering strong support, is established at $123,000 on the hourly chart, underscoring the ongoing positive sentiment.
Key Resistance and Bullish Targets
Looking ahead, Bitcoin faces immediate resistance near $124,000. A more significant barrier lies at the $124,500 level, which coincides with the 61.8% Fib retracement of the recent decline from the $125,670 high to the $122,320 low. Overcoming the $125,500 resistance zone could propel the price higher, potentially challenging the $126,500 and $128,000 levels. Should the bulls maintain control, the next major target for Bitcoin could be a formidable $130,000, signifying a continued robust performance in the short term.
Downside Risks and Support Levels
Conversely, if Bitcoin fails to clear the $124,500 resistance, it could trigger a fresh decline. Immediate support is anticipated around the $123,000 trend line. The first major support point is located near $122,250, followed by subsequent cushions at $121,500 and the psychological $120,000 mark. A more significant downturn might see the price test the crucial $118,500 support level, a breach of which could make a swift recovery challenging for BTC in the near term. Technical indicators like the Hourly MACD are currently gaining pace in the bullish zone, and the Hourly Relative Strength Index (RSI) is holding above the 50 level, reinforcing the prevailing bullish outlook.
