Bitcoin is likely to decline further after encountering this last barrier.

crypthub

1 day ago

Bitcoin's Recent Rally

Bitcoin's price surged to a record high exceeding $125,000, but its momentum appears to be slowing. The asset has encountered a key resistance level, suggesting a potential short-term correction. Analysts are observing patterns similar to those seen in previous rallies throughout Bitcoin's consolidation phase.

Potential Price Correction

Technical indicators, including a bearish divergence in the Relative Strength Index (RSI), point towards a possible pullback. This correction could potentially extend to the $119,500 level, a key Fibonacci retracement area. Previous pullbacks have consistently found support at this level.

Market Outlook and Support

Bitcoin has already corrected nearly 2% in the last 24 hours, currently trading around $122,597. Despite this pullback, the cryptocurrency has still increased by 5% over the last week. Maintaining support above $120,000 remains important.

Future Prospects

Breaking above this final resistance would confirm a bullish breakout. Such a breakout could signal the beginning of a new upward trend for Bitcoin. Institutional investment through ETFs continues to provide support.