Bitcoin's Price Momentum Stalls Below Crucial $125K Threshold
Bitcoin (BTC) has recently experienced a notable correction in its price, retreating after extending gains above the $125,000 mark. The cryptocurrency, having touched a new high of $126,198, is now consolidating near $122,200 and faces an uphill battle to regain upward momentum, raising questions about its immediate trajectory.
Current Market Standing and Key Resistance
Following its peak, Bitcoin saw a dip below the $123,000 support zone and tested the $120,500 region, with a low at $120,694. While a recent recovery pushed it above the 50% Fibonacci retracement level of the latest decline, BTC is currently trading below $123,500 and the 100 hourly Simple Moving Average. Immediate resistance is found near $123,450, with key hurdles at $124,000 and the 61.8% Fib retracement level. A successful push above $124,850 could potentially propel the price towards $125,500 and even $126,000, but the major resistance remains at $126,200.
Potential Downside and Support Levels
Should Bitcoin fail to breach the $124,000 resistance zone, a fresh decline could be imminent. Immediate support is established around $122,000, reinforced by a bullish trend line on the hourly chart. Further down, the first major support lies near $121,200, followed by the significant $120,500 zone. Sustained losses below this could drive the price towards $118,500, with a critical long-term support level at $116,800. Technical indicators, such as the Hourly MACD losing pace in the bullish zone and the Hourly RSI for BTC/USD positioned below the 50 level, suggest a prevailing bearish sentiment.
