Bitcoin News Today: Bitcoin Consolidates Below $118,000 Amid Fed's Hawkish Stance

Bitcoin's price has been consolidating gains below the $118,000 resistance level, indicating a period of stability after recent surges. This consolidation phase has been marked by a psychological barrier of $100,000 being breached, leading to a shift where profit-takers were replaced by buyers who anticipate higher valuations. The current price action suggests that Bitcoin could start a downside correction if it breaks the $116,200 support zone. Analysts have highlighted potential price targets of $150,000, but also caution about the risks of downside liquidations at $115,300. This cautious outlook is influenced by the hawkish stance of the Federal Reserve and low odds of rate cuts, which could impact market sentiment and Bitcoin's price trajectory.

Bitcoin started a fresh decline after it failed to clear the $120,000 zone. The price is trading below $118,000 and the 100 hourly Simple moving average. There is a bearish trend line forming with resistance at $118,000 on the hourly chart of the BTC/USD pair. The pair might start another increase if it clears the $120,000 resistance zone. Bitcoin price started a correction after the bulls failed to clear the $120,000 resistance. BTC dipped below the $118,000 level and tested the $116,200 zone. A low was formed at $116,260 and the price is now attempting a fresh increase. The bulls were able to push the price above the $117,000 resistance level. There was a move toward the 50% Fib retracement level of the downward move from the $119,630 swing high to the $116,260 low.

Bitcoin is now trading below $118,500 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $118,000 level. There is also a bearish trend line forming with resistance at $118,000 on the hourly chart of the BTC/USD pair. The first key resistance is near the $118,400 level. It is close to the 61.8% Fib level of the downward move from the $119,630 swing high to the $116,260 low. The next resistance could be $119,150. A close above the $119,150 resistance might send the price further higher. In the stated case, the price could rise and test the $120,500 resistance level. Any more gains might send the price toward the $122,000 level. The main target could be $123,200.

If Bitcoin fails to rise above the $118,400 resistance zone, it could start another decline. Immediate support is near the $116,200 level. The first major support is near the $115,500 level. The next support is now near the $115,500 zone. Any more losses might send the price toward the $112,500 support in the near term. The main support sits at $111,200, below which BTC might continue to move down. The hourly MACD is now gaining pace in the bearish zone. The hourly RSI (Relative Strength Index) for BTC/USD is now below the 50 level. Major Support Levels are $116,200, followed by $115,500. Major Resistance Levels are $118,000 and $120,500.

Despite the near-term consolidation, several analysts maintain a bullish outlook on Bitcoin. The price action continues to consolidate after reaching all-time highs of $123,000, and liquidation levels are making some traders nervous. Historical patterns show that when liquidation deltas are neutral, Bitcoin often consolidates before making a decisive move. This consolidation phase is also characterized by a bear flag pattern, which could signal a potential break below the current support levels if confirmed. The current market dynamics are influenced by various factors, including the hawkish stance of the Federal Reserve and the low odds of rate cuts. These factors contribute to the overall market sentiment and could impact Bitcoin's price trajectory in the coming weeks. Traders and investors are closely monitoring the $116,200 support zone, as a break below this level could trigger a downside correction. However, the bullish outlook maintained by several analysts suggests that there is still potential for Bitcoin to reach higher valuations in the future.