Bitcoin just hit a new all-time high of $118,667 last week, but it’s cooling off a bit now, trading around $117,953. After a bunch of days of climbing, it seems to be pausing for a breather.
Support and Resistance: Where Bitcoin Might Go Next
A crypto analyst, RLinda, looked at the charts and sees two possible scenarios:
Scenario 1: A Dip Downward
If Bitcoin can’t hold above the $117,500 support level, we could see a price drop. This could take Bitcoin down to $115,500, then maybe $114,300, and even back to the previous high of $111,800. There are a few other potential support levels along the way, around $113,000 and $111,960, but the main strong support is around $110,400. Basically, a significant drop could mean a slide back towards $110,000.
Scenario 2: A Blast to $125,000
On the flip side, Bitcoin could still surge past $118,000 and even reach $125,000. But, this depends on a strong daily close above $118,400 and $118,900. Breaking through these resistance levels would signal a continuation of the upward trend.
The Big Picture: Consolidation and Long-Term Sentiment
It’s important to remember that this pause could last for weeks or even months. We’ve seen similar consolidation periods in past Bitcoin rallies. Looking at long-term holder sentiment, things aren’t overly exuberant yet. Even with the new all-time high, the market isn’t showing the extreme levels of optimism seen in previous bull runs. This suggests there’s still room for further growth.
