Bitcoin News Today: Bitcoin Faces Resistance at $120,000, Potential Rally to $135,000 Awaits

Bitcoin (BTC) is currently experiencing resistance at the $120,000 mark, indicating a potential phase of consolidation before a possible impulse rally to $135,000. This resistance level suggests that the cryptocurrency market may experience a period of stability or slight fluctuations as investors and traders assess the current market conditions. The consolidation phase is a common occurrence in the cryptocurrency market, where the price of an asset stabilizes after a significant rally, allowing for a more sustainable upward movement in the future.

The technical charts of Bitcoin suggest that the cryptocurrency could remain range-bound for an extended period. This range-bound movement is characterized by the price of Bitcoin fluctuating within a specific range, without making significant gains or losses. This phase of consolidation is crucial for the cryptocurrency market, as it allows for a more stable and predictable environment for investors and traders. The consolidation phase also provides an opportunity for new investors to enter the market, as the price of Bitcoin is less volatile during this period.

The resistance at $120,000 is a significant level for Bitcoin, as it represents a psychological barrier for many investors and traders. Breaking through this resistance level could signal a new phase of growth for the cryptocurrency, as it would indicate that the market has accepted the higher price point. The impulse rally to $135,000, as predicted by some analysts, would represent a significant gain for Bitcoin, further cementing its position as the leading cryptocurrency in the market.

Buyers attempted to resume the upward movement on Wednesday, but the long wick on the candlestick indicates that the bears defended the $120,000 level. Repeated failures to cross above the $120,000 level could initiate a deeper pullback toward the 20-day exponential moving average ($113,528). If the price rebounds off the 20-day EMA, the bulls will again attempt to push the BTC/USDT pair above the $120,000 to $123,218 resistance zone. If they succeed, the pair could start the next leg of the uptrend to $135,729 and eventually to the pattern target of $150,000.

The bears will have to pull the price below the $110,530 support to seize control. The pair may then plummet to $105,000. The 20-EMA has flattened out, and the relative strength index (RSI) is just above the midpoint on the 4-hour chart, signaling a possible range formation in the near term. The pair could trade between $115,000 and $123,218 for some time. If the price turns down and breaks below $115,000, the pair could drop to the neckline and later to the solid support at $110,530. Buyers are expected to fiercely defend the $110,530 level because a break below it may tilt the short-term advantage in favor of the bears.

The first sign of strength on the upside will be a break above $120,064. The pair may then retest the all-time high at $123,218. The consolidation phase is also an opportunity for investors and traders to reassess their positions and strategies. During this period, it is essential to monitor the market closely and make informed decisions based on the latest developments and trends. The cryptocurrency market is known for its volatility, and the consolidation phase provides a window of stability that can be utilized to make strategic investments.