Bitcoin price rallied to a new all-time high above $126,000. BTC is now consolidating gains and showing a few signs of trend exhaustion.
Bitcoin Price Rally Hits Resistance
After forming a base above the $115,000 pivot level, Bitcoin started a steady increase. There was a clear move above the $118,000 and $120,000 resistance levels. Besides, there was a close above a contracting triangle with resistance at $116,200 on the daily chart.
It opened the doors for a fresh surge above $120,000 and the 50-day simple moving average (blue). BTC gained over 5% and even traded above the $125,000 level. The price traded to a new all-time high at $126,110 before there was a minor pullback.
Bitcoin is now consolidating gains near $124,000. The current daily candle is showing a few signs of trend exhaustion. If there is a pullback, the price might test the $122,000 support zone. It is close to the 23.6% Fib retracement level of the recent wave from the $108,880 swing low to the $126,110 high.
The first major support is $121,500. A downside break and close below $121,500 might increase selling pressure on BTC. In the stated case, the price could decline toward $120,000. If there is no reaction from $120,000, the price could accelerate lower.
In the stated case, the price could test the $117,500 support and the 50% Fib retracement level of the recent wave from the $108,880 swing low to the $126,110 high. Any more losses might call for a move toward the 50-day simple moving average (blue) at $114,000.
Fresh Surge In BTC?
After Bitcoin completes the current consolidation or a downside correction, there could be a fresh increase. Immediate resistance on the upside is $125,650. The first major hurdle is $126,200.
If the bulls remain in action, they could attempt to clear the $125,650 and $126,200 resistance levels. If they succeed, the price could stage a fresh surge. The first stop for the bulls above $126,200 could be $128,000. A close above $128,000 might set the pace for a larger increase. In the stated case, BTC could aim for a move toward $130,000.
Overall, Bitcoin is consolidating gains after hitting a new all-time high above $126,000. The current technical structure suggests that BTC could correct some gains to test $122,000 or even $120,000 in the short term.