4 min readAfter breaking into new all-time high levels on 10 July, Bitcoin is now consolidating above 116,000 USD. This pause comes after an impressive move that pushed price into price discovery territory. For now, the focus shifts to identifying key technical levels that could influence the next major move.
On the daily chart, we are watching the previous all-time high area around 112,000 as a potential zone of technical confluence. This level aligns with the Daily 50 EMA, the 50 percent Fibonacci retracement of the most recent breakout, and a longer-term ascending trendline that has supported price action over the past months. This clustering of technical factors makes 112,000 a critical area to monitor if Bitcoin retraces further.
Zooming into the 4-hour chart, the price is currently holding above a horizontal support slightly above 116,000, which can be viewed as the range lows of a potential short-term consolidation structure. This range, marked with white dotted horizontals, could develop into either a distribution phase or a re-accumulation range before higher continuation.
A break below these range lows could trigger a move down towards the previous all-time high area at 112,000, where the daily confluence zone lies. On this 4-hour chart, an additional Fibonacci retracement has been applied, showing the long reload zone overlapping this area (0.618 – 0.786), further adding to the importance of 112,000 as a potential support.
On the other hand, a reclaim of the range EQ near 119,000 to 120,000 would be an encouraging sign of local strength. This could open the door for another attempt at price discovery and continuation of the broader bullish trend.
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