Bitcoin News Today: Bitcoin Drops 4% After Reaching New All-Time High

Bitcoin's price has recently experienced a pause in its upward trajectory, consolidating gains after reaching a new all-time high. The cryptocurrency surged past the $120,000 mark, peaking at $123,140, before retreating to trade around $118,500. This consolidation phase is characterized by a downside correction, with the price currently hovering near the 100 hourly Simple Moving Average. The hourly chart of the BTC/USD pair indicates a break below a bullish trend line with support at $119,800, suggesting a potential for further correction if the price fails to clear the $120,500 resistance zone.

The immediate resistance levels are identified at $119,550 and $120,500, with the next significant resistance at $122,000. A close above this level could propel the price towards $123,200 and potentially even $125,000, with the main target set at $130,000. However, if Bitcoin struggles to surpass the $120,500 resistance, it could initiate a downside correction. The immediate support levels are at $117,500 and $115,800, with further support at $114,000 and $112,500. The main support level is positioned at $110,500, below which the price could continue to decline.

Technical indicators, such as the Hourly MACD and RSI, suggest a loss of momentum in the bullish zone, with the RSI for BTC/USD currently below the 50 level. This technical analysis indicates a period of consolidation and potential volatility as the market digests the recent gains. The current price action reflects a pause for breath, allowing investors to reassess their positions and strategies in the evolving crypto landscape. The market dynamics are shifting, with Ethereum and other altcoins gaining traction as Bitcoin's momentum temporarily subsides. This shift could signal an altcoin awakening, with investors exploring new opportunities in the broader cryptocurrency market. The consolidation phase presents a strategic window for investors to evaluate their portfolios and consider diversifying their holdings to capitalize on the potential growth of altcoins.

Bitcoin's recent price action has been marked by a significant downside correction from its new all-time high near $123,200. The cryptocurrency dipped below key support levels at $122,000 and $120,000, entering a short-term bearish zone. The price found support near the $115,800 zone, with bulls protecting a move below $118,000. The price stayed above the 50% Fib retracement level of the upward move from the $108,636 swing low to the $123,140 high, indicating a potential for a rebound. The formation of a rising channel with support at $118,200 on the hourly chart of the BTC/USD pair suggests that the price might attempt a fresh increase if it clears the $120,000 resistance zone.

Immediate resistance on the upside is near the $119,200 level, with the first key resistance at $119,500. The next resistance could be $120,000. A close above the $120,000 resistance might send the price further higher, potentially testing the $121,200 resistance level. Any more gains might send the price toward the $122,000 level, with the main target at $123,200. However, if Bitcoin fails to rise above the $120,000 resistance zone, it could continue to move down. Immediate support is near the $118,200 level and the channel. The first major support is near the $116,500 level, with the next support at $115,500. Any more losses might send the price toward the $113,500 support in the near term. The main support sits at $110,500, below which BTC might continue to move down.