Bitcoin on the Brink: Will It Break Through or Pull Back?

Key Insight:

• Bitcoin is encountering selling pressure around $120,000, however the bulls are holding their ground, suggesting a possible surge to recent heights.

Current Market Dynamics

Bitcoin (BTC) recently pulled back after hitting the $120,000 resistance level on Wednesday, signaling that sellers are actively defending this price point. Despite not having the ability to break past this significant threshold, there was a net outflow of $285.2 million from US-based spot exchange-traded funds (ETFs) over the past three days, in line with Farside Investors. This indicates a cautious stance amongst investors within the short term. On a brighter note, the bulls have managed to maintain the worth above $115,000, showing resilience.

What should we be maintaining a tally of within the near future? Let’s dive into the charts to uncover some insights.

Bitcoin Price Forecast

Currently, Bitcoin is navigating a narrow range between the 20-day easy moving average (SMA) at $115,961 and the overhead resistance of $120,000.

With the 20-day SMA trending upwards and the relative strength index (RSI) in a positive zone, the trail of least resistance appears to be upward. Should the buyers propel the worth beyond the $120,000 to $123,218 resistance zone, the BTC/USDT pair could proceed its upward trajectory, potentially soaring to $135,729 after which $150,000.

If we begin to see signs of weakness, it’ll likely manifest as a detailed below the 20-day SMA, indicating the bulls is likely to be taking profits. This may lead to a decline to the inverse head-and-shoulders pattern’s neckline and further right down to $110,530. A break below $110,530 would likely shift the momentum in favor of the bears.

On the 4-hour chart, each moving averages are flattening, and the RSI is hovering near the midpoint, suggesting a balance between buyers and sellers. A good consolidation near an all-time high is commonly bullish because it indicates buyers are holding their positions in anticipation of one other upward move. A break and shut above $123,218 would likely put buyers back in the motive force’s seat.

Conversely, a break and shut below $115,500 could trigger more selling pressure as short-term buyers might rush to exit. This could push the worth right down to $110,530, where buyers are expected to re-enter the market.

This article shouldn’t be intended to offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their very own research before making decisions.