Bitcoin Consolidates at $116K—Next Move Could Define Path to $123K or $105K
Bitcoin (BTC) is entering a pivotal phase on the daily chart, with mixed signals from indicators and a congested order book pointing to both upside potential and lingering downside risks.
After oscillating between $112,500 and $116,900 over the past week, the market is consolidating beneath key resistance levels, with traders carefully watching the balance between support and overhead supply.
Bitcoin Indicators Show Tug of War
Momentum indicators suggest indecision rather than dominance by either side. The relative strength index (RSI) has rebounded from oversold territory, but its failure to sustain strong momentum above neutral levels indicates a fragile recovery.
Daily chart for WBTC/USD (Source: GeckoTerminal)
Meanwhile, the MACD remains in negative territory, showing that selling pressure is still active, though the pace of declines is slowing. The short-term exponential moving averages (9 EMA and 20 EMA) remain closely aligned, underscoring the lack of a decisive trend shift.
In short, bulls have prevented deeper losses, but bears continue to cap rallies before momentum can build.
Key Levels to Watch
On the downside, immediate support for the Bitcoin price rests at $112,546, a level that has already absorbed multiple tests. A clean break below this would likely expose Bitcoin to deeper retracements toward $105,681 and ultimately $103,985, zones that could invite bargain hunters but also confirm bearish control if breached.
On the upside, strong resistance awaits at $119,841 and $119,954, with a further barrier at $123,306. These levels coincide with clustered sell orders and historical rejection points, meaning Bitcoin must clear them with conviction before any sustained breakout can occur.
Bitcoin Order Book Signals Short-Term Pressure
The Bitcoin order book reveals a dense battle around the current price. Bid walls near $115,563 and $115,600 highlight pockets of buyer defense, suggesting short-term stability if these levels hold. However, if these walls give way, the market risks sliding by up to 0.2%, which could accelerate downside momentum.
On the other side, ask walls near $115,784 and $115,862 reflect profit-taking zones that could temporarily cap rallies. Clearing these layers of supply may open the path to retesting resistance at $119K, but without strong volume, the breakout risks stalling.
Trading Outlook
For long traders, potential entries lie near support zones if Bitcoin stabilizes above $112,546 with improving RSI momentum. Conservative targets would be the resistance band between $119,841 and $119,954, with partial exits recommended ahead of the $123K zone to secure gains.
For short traders, failed rallies around $116K–$117K present opportunities to fade upside attempts, especially if the MACD continues to reflect bearish divergence. Exits could be placed near the $112,546 support, with deeper targets only in play if that level decisively breaks.
At present, the market is in a consolidation phase, and the next directional break from this narrow range will likely set the tone for the coming week.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
