Bitcoin (BTC) Facing Another Rejection

Based on recent market analysis, Bitcoin is currently facing a key resistance level around $118,000. While it has shown strong upward momentum and is trading in a generally positive trend, it has not yet decisively broken through this resistance.

Here’s a breakdown of the current situation and the technical factors at play:

Current Price and Trend:

Bitcoin is trading between approximately $116,000 and $117,000, with some sources noting it’s nearing the $117k mark.

In the short term, Bitcoin is in a rising trend channel. This suggests that investors are buying at progressively higher prices, indicating a good developmental trend.

Over the long term, the technical analysis remains positive, with Bitcoin in a rising trend channel.

Key Resistance and Rejection Points:

Bitcoin is currently testing resistance levels, with a major resistance point identified at $118,183 and another at $120,000.

A decisive move through these levels would be a strong bullish signal. However, if the price is rejected, it could lead to a negative reaction and a pullback.

Some analysis suggests that the currency is in a rectangle formation between support at $113,201 and resistance at $118,183. A break in either direction will likely determine the next move.

Underlying Market Factors:

Positive Sentiment: There’s been a recent rally from lows around $112,000, partly fueled by improving market sentiment and news such as President Trump’s executive order regarding 401(k) crypto access.

Low Volatility: Realized volatility, a measure of how much the price has moved, is currently near historic lows. Historically, major tops have occurred when volatility was rising or high, suggesting that the current period of low volatility is not indicative of a major top.

Miner Health: Data suggests that Bitcoin miner health is in a “neutral-to-positive” state, with the price being above the last difficulty bottom. This reduces the risk of forced selling by miners, which often adds downward pressure to the market.

Potential for Pullback: While the short-term outlook is positive, some analysts point to the possibility of a pullback. If Bitcoin fails to hold above a crucial support level (e.g., around $114,555 or $112,000), it could decline towards the $100,000 level.

In summary, Bitcoin is at a critical juncture. While the overall trend remains bullish, its ability to break through the immediate resistance around $118,000 to $120,000 will be key to its next move. A successful breakout could lead to new all-time highs, while a rejection could trigger a consolidation or a deeper pullback.