Bitcoin price started a downside correction below $118,000.
BTC could start a fresh increase unless there is a close below the $110,500 support.
Bitcoin Price Consolidates Above 50-Day SMA
In the last analysis, we saw a downside correction in Bitcoin price from the $123,120 high. There was a steady decline below the $121,500 and $120,000 levels. The price even settled below the 23.6% Fib retracement level of the upward move from the $98,579 swing low to the $123,120 high.
Finally, there was a move below the $115,000 support level. However, the bulls were active near the $112,000 zone and the 50-day simple moving average (blue).
Bitcoin is now consolidating above the $112,000 zone and the 50-day simple moving average (blue). If the price stays above the $112,000 zone, the bulls might attempt a fresh increase. On the upside, immediate resistance is near the $115,500 level.
The first major resistance is near the $116,500 level. There is also a key declining channel forming with resistance near $116,500 on the daily chart. A close above the $116,500 resistance might spark more upsides.
In the stated case, the price could attempt a move toward the $120,000 level. A close above the $120,000 level could send the BTC price toward the $122,000 level and a new ATH. Any more gains might call for a test of $125,000.
More Losses In BTC?
If Bitcoin bulls fail to push the price above $116,500, there could be a bearish reaction. Immediate support is near the $112,500 level. The first major support is near the $112,000 level and the 50-day simple moving average (blue).
A downside break and close below the $112,000 support might start a major downside correction. In the stated case, Bitcoin could test the $110,800 support or the 50% Fib retracement level of the upward move from the $98,579 swing low to the $123,120 high.
The next key support could be $108,000. If the bulls fail to protect the $108,000 zone, the price could start a major decline. In the stated case, the price could test the $104,500 support. Any more losses might call for the test of the $102,000 support.
Overall, Bitcoin is consolidating above the key support at $112,000 and the 50-day simple moving average (blue). To start a fresh increase, the price must stay above $112,000 and settle above the $116,500 level in the coming sessions.