Bitcoin News Today: Bitcoin Surges 19% to $119,000, Attempts Key Resistance Break

Bitcoin has surged past $119,000, marking a significant attempt to break through a key resistance level that has been closely monitored by analysts. This move comes after a period of consolidation, where the cryptocurrency has been trading within a narrow range following its rejection from above $123,000 last week. The current push above $119,000 is the first convincing attempt to breach the top of this range, indicating a potential shift in market dynamics.

The key resistance level at $118,483 has been identified as a critical pivot point for the next major move. Analysts have been watching this level closely, as a successful break above it could set the stage for a return to the recent all-time high near $123,207. However, previous attempts to surpass this level have been met with repeated rejections, capping the price and maintaining the tight trading range.

On the downside, support levels are situated around $115,719 and $115,215. A breakdown below these levels could introduce additional selling pressure, potentially leading to further downside movement. The current market structure suggests that if buyers fail to defend these support zones, the price could experience a decline.

Price action earlier this week showed signs of recovery, but momentum stalled once it reached the resistance zone. Until the $118,483 level is cleared, intraday traders may continue to operate within the tight structure, awaiting a definitive breakout or breakdown.

The Relative Strength Index (RSI) indicates that Bitcoin's momentum has cooled down after a recent overbought spike. The RSI crossed above 70 in early July, signaling that the price rally was stretched. However, this move was short-lived, as the RSI quickly dropped back below 60, indicating that buyers lost strength and the rally faded. Since then, the RSI has remained between 50 and 60, suggesting a market without clear direction. The RSI line and its moving average have crossed each other several times, reflecting choppy conditions and trader hesitation.

Currently, there is no strong indication of either upside or downside pressure. Momentum appears balanced, with neither buyers nor sellers firmly in control. Until the RSI breaks above 70 or falls below 30, Bitcoin is likely to continue trading within its current range.

Despite some macroeconomic headwinds, Bitcoin's bullish move persists. U.S. equities have recently reached new highs but have experienced choppy conditions. A stronger U.S. dollar index and rising Treasury yields are adding pressure to risk assets, including cryptocurrencies. Additionally, the start of earnings season for traditional markets and the typically lower liquidity during the summer months may contribute to sharp intraday moves in the coming days.