Bitcoin News Today: Bitcoin Holds Above $117,400 as Traders Watch $120k Breakout Potential

Bitcoin has maintained a firm position above the critical $117,400 support level, signaling resilience despite recent market volatility. This development comes amid a broader consolidation phase for the cryptocurrency, with analysts and traders closely monitoring key resistance zones to gauge potential price direction [1]. The current price structure suggests a defined range between approximately $116,000 and $120,000, with traders noting gradual weakening in demand that could lead to a breakdown if support levels are tested [2].

The immediate resistance for Bitcoin is clustered around $118,400 to $119,285.71, a zone that has repeatedly acted as a barrier to upward momentum [3]. Failure to break above this range, analysts warn, could trigger renewed selling pressure and push the price back toward the $117,400 support threshold. Meanwhile, a broader resistance level near $120,000 remains a focal point, with traders anticipating a potential reversal if BTC fails to secure a sustainable close above it [2]. Technical indicators, such as the Bollinger Bands, show price activity consolidating near the middle band, reinforcing the idea of a sideways trading pattern [4].

The market’s cautious stance is further reflected in mixed performance across altcoins, with some assets showing divergence in sentiment. While Bitcoin’s stability above $117,400 has provided a degree of reassurance to investors, the absence of a decisive breakout suggests that broader market confidence remains fragile. Traders are advised to monitor volume dynamics and on-chain metrics for early signals of a potential shift in trend, as liquidity conditions in the crypto market continue to evolve [1].

According to analysis prepared by Ali Charts, Bitcoin rebounded after testing the $116,000 to $117,000 range and continues to trade above a key ascending trendline. This rebound has helped BTC form higher lows, supporting the ongoing uptrend around the $119,000 to $120,000 area [1]. A breakout above $120,250 could confirm a new bullish phase, with subsequent targets at $123,300 and $131,000. The RSI on the daily chart is at 65, signaling continued bullish momentum, though the MACD has recently turned negative. Daily trading volume stands at $70.99 billion, a slight decline of 0.45%, while the volume-to-market cap ratio remains healthy at 3.1% [1].

Despite a recent $131 million ETF outflow reported by SoSoValue, long-term accumulation continues. Institutional players such as MicroStrategy have increased BTC holdings, reinforcing market confidence. The 100-day EMA near $110,597 provides strong technical support, and holding above $117,400 may fuel the next upward move, as noted by Daan Crypto Trades [1]. The fully diluted valuation has reached $2.49 trillion, based on Bitcoin’s maximum supply of 21 million BTC [1].

According to analyst forecasts, the next few weeks will be critical in determining whether Bitcoin can reassert dominance or face renewed downward pressure. A successful breach of the $120,000 resistance would open the door to higher targets, but this scenario hinges on sustained buyer participation and macroeconomic factors, such as U.S. interest rate decisions and regulatory developments in major markets [3]. Conversely, a breakdown below $117,400 could accelerate a retest of prior support levels, testing the strength of the current bullish narrative.

The analysis underscores the importance of strategic positioning for both short-term traders and long-term investors. While the immediate technical outlook remains neutral, the interplay between liquidity and market sentiment will likely dictate Bitcoin’s trajectory in the near term. As the cryptocurrency market navigates this pivotal phase, traders are urged to remain vigilant to evolving dynamics, particularly in light of the historically volatile nature of digital assets [4].

Sources:

[1] [Bitcoin Holds Firm Above $117,400 Support, Here Are the Next Resistance Levels to Watch](https://cryptofrontnews.com/bitcoin-holds-firm-above-117400-support-here/)

[2] [Page 18 | BTC / Tether USD on BSC](https://www.tradingview.com/symbols/BTCUSDT_5840B7.USD/ideas/page-18/?asset=base)

[3] [Page 2 | Bitcoin Trade Ideas — BITSTAMP:BTCUSD](https://www.tradingview.com/symbols/BTCUSD/ideas/page-2/?sort=recent)

[4] [Ashiir Malik's Profile | Binance Square](https://www.binance.com/square/profile/ashir_malik)