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- Bitcoin trades above $118,800 with a strong weekly gain.
- Analysts see possible corrections before a bigger rally.
- Key technical levels may decide the next price move.
Bitcoin is trading at $118,814, up 2.52% in the past 24 hours. Over the last week, it has gained 2.06%, with a weekly high near $118,964. The cryptocurrency continues to attract attention from traders and analysts as it tests critical price zones.
Recent rally boosted Bitcoin to all-time high. Price movement, however, indicates short-term indecisiveness. Both macro economic figures and technical levels, according to analysts, can be triggers of the next movement.
Treasury Rejects Idea of Adding Bitcoin to Reserves
Analyst CryptoRobotics tweeted that, Yesterday evening, Bitcoin tested its all-time highs. The market did not register major profit-taking at that time. But at midday today, sellers appeared. Weak U.S. Producer Price Index data and remarks from the U.S. Treasury Secretary altered sentiment. The official eliminated buying Bitcoin to boost the country’s reserves.
That announcement, together with softer inflation data, contributed to a steep price reversal. Bitcoin reached a local low in the vicinity of the $117,500–$116,000 area, which has been a region of high volume accumulation in the past. Traders are currently monitoring buyers’ reactions within this area.
Market observers pinpoint two potential selling opportunities in the near term: at $120,000, where large order imbalances have been registered, and in the $121,000–$122,200 area, where buying absorption may induce further bearish pressure.
Historical Patterns Point to Major Bitcoin Surge
Certain analysts think that the pullback is part of the natural cycle prior to the subsequent surge. Egrag Crypto notes the significance of the 21-week Exponential Moving Average. The latest candles closed below the said area, but past data indicate robust rallies after the similar setup.
Previous movements from comparable signals have generated typical increases of 101%, and prior rallies have topped out at 68%, 162%, and 74%. History may repeat itself, and Bitcoin may look to $170,000 to $190,000 in the future. The analyst reiterates that the bullish scenario remains in force as long as Bitcoin remains above the 21 EMA on the weekly chart.
Traders continue to be optimistic and wary in the meantime. The market responds to economic releases and technical patterns. A break above $120,000 could help resurrect momentum, and a close below the present support area could attract bigger corrections.
Related Reading: Metaplanet Buys $61.4M in Bitcoin, Boosting Holdings to Over 18,000 BTC
