Bitcoin has recently experienced a notable upward movement, surpassing the $116,500 level and establishing new highs. The cryptocurrency gained over 2% during this surge, trading above key technical support levels, including the 100-hour Simple Moving Average. The current momentum hints at potential for further gains, with the price currently approaching the $122,000 resistance zone.
The rally began after Bitcoin cleared previous resistance levels around $115,500, gaining momentum through subsequent breakouts above $116,000 and $118,500. The bullish move culminated in a new all-time high near $122,550. Since then, the price has been consolidating above the 23.6% Fibonacci retracement level, calculated from the swing low of $116,679 to the high of $122,550, indicating sustained buying interest.
Technical analysis suggests a supportive trend line is forming with an important support level at approximately $119,000 on the hourly chart. Immediate resistance stands near $122,550, with further checkpoints at roughly $123,500 and $124,000. Should the price successfully break above $124,000, a move towards higher targets such as $128,000 and potentially $130,000 could be anticipated, driven by momentum and market sentiment.
However, the market remains cautious. If Bitcoin fails to sustain gains above $122,500, a correction could ensue. Critical support levels are identified around $121,500 and $119,500, with further support at $119,000 and $118,500. A move below these levels might lead to a retest of the lower zones, with a key support at approximately $116,500.
Technical indicators support the bullish outlook. The MACD line is gaining strength in the positive zone, and the Relative Strength Index is above the 50 level, indicating robust buying pressure. Key support levels are at $122,500 and $121,500, while resistance remains at $122,500, with broader resistance points at $124,000 and beyond.
