Bitcoin, the largest cryptocurrency by market capitalization, pulled back from a record $123,140 to approximately $118,500. This article examines recent changes and key technical levels.
Record-Breaking Rally
Bitcoin reached a new all-time high of $123,140 after clearing the $116,500 resistance zone. This surge was fueled by buying momentum that pushed the asset above the $118,000 and $120,000 marks. However, the cryptocurrency faced selling pressure as the price corrected.
Technical Levels and Prospects
Bitcoin is currently positioned near the 100-hour simple moving average, a key level for dynamic support or resistance. Immediate resistance levels lie at $119,550 and $120,500. If Bitcoin manages to break $120,500, the next target will be $122,000, which could lead to further gains towards $123,200.
Risks and Consolidation
Despite the recent rise, downside risks loom. If Bitcoin fails to breach the $120,500 resistance, a pullback to support at $117,500 is possible, with further levels at $115,800 and $114,000. Technical indicators show mixed signals, reflecting market uncertainty.
Bitcoin's retreat from record highs reflects typical market behavior following significant price advances. The cryptocurrency remains in a consolidation phase, and traders' actions will determine the sustainability of recent gains and the direction of the next move.
