The Bitcoin keeps on going strong despite recording consolidation slightly below the figure of $120,000. At the time of writing, Bitcoin price was listed at $118,294 with an increase of 0.52%. Despite this recent consolidation, Bitcoin’s long-term outlook remains predominantly bullish, supported by strong on-chain metrics, even as technical indicators present a mixed picture.
The last 24 hours have seen the trading range of the price stretching between $115,800 and $118,919 showing very good signs of market activity.
Having a capitalization of $2.35 trillion, and with a continuously rising number of investor interest, Bitcoin is proving to stand tall despite macro uncertainties. With less than 5% away from its all-time high of $123,091, the question comes about, can this continue or is there correction in the air?
Short-Term Holder Cost Basis Signals Strong Support
According to on-chain data sources provided by Glassnode, the hype behind Bitcoin is mostly positive and this can be tapped to prove that there is inherent strength in Bitcoin. Notably, the BTC crypto is trading above every single 24-hour short-term holder (STH).
Additionally, the cost base is varying between the 24-hour group at $117,200 and the 3-month group at $110,300, and 6-months all the way down at $103,700. Such grouping of achieved prices between $110,000 and $117,000 signifies that most new investors are making profits.
This reduces the immediate incentive for a broad sell-off and establishes these price levels as strong psychological and structural support zones. Furthermore, these cost bases overlap with known low-volume areas, lending additional structural integrity to the current support range.
EMAs and MACD Paint a Mixed Picture
Looking at the technical aspect, Bitcoin is already experiencing reduced volatility as the Bollinger Bands (BB) are narrowing. With the price at $117,913.9, it is extremely close to its centre of the band and the 20-day SMA ($118,307) now acts as the immediate resistance.
The most important support is at the lowest borders of the upper zone of Bollinger Bands i.e. at $117,500. Any bearish candlestick near the $116.7K mark would put BTC at a steeper risk of a pullback to levels like $115K or even $112K in case it loses more buyers.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator is still tending towards a bearish position. The MACD line (1,723.4) is still below the signal line (2,209.4) and it shows that the negative crossover has occurred.
For bulls to regain control, Bitcoin needs to decisively reclaim the $118.3K resistance level and hold above it with sustained trading volume. Failure to do so could lead to additional consolidation or a minor correction.
Can BTC Break $120K?
Several times, BTC has attempted to penetrate the $120k zone, but it has not cut through. However, a successful break above the 120K to be supported by an extra volume that can stimulate a new uptrend to the peak of ATH of $123,091 that was recorded earlier this month.
Conversely, in case Bitcoin price is not accepted at the level, there is solid support at $115,000. This area is supported by short realized prices as well as the 50-day EMA and thus chances are high that this area may rebound in case of a price fall.
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