Bitcoin Primed for Rebound: Key Support Level Could Launch Rally to $121,000
Bitcoin's bulls are licking their wounds—but the charts whisper 'not so fast.'
After a brutal correction, the king of crypto is coiling at a critical support level. Breakout traders are salivating at the setup, while skeptics warn of another 'buy the dip' trap.
The $121,000 Gambit
Fibonacci retracements paint a tantalizing picture: reclaim this zone, and the path to six figures opens up. Technical analysts point to eerily similar patterns from previous halving cycles—each time preceding parabolic runs.
Meanwhile, Wall Street's crypto tourists still can't decide if this is digital gold or a high-beta tech stock. Their hesitation might just be the fuel for the next leg up.
Remember kids: in crypto, 'support levels' are just collective hallucinations—until they're not.
Bitcoin Trends Low After New Highs
After the reversal back into the $117,000 levels, crypto analyst TehThomas has published an analysis outlining the current bitcoin price trend and where it could be headed next. So far, the analyst explains that Bitcoin is still trading in a well-defined trend after being rejected from the upper resistance zone at $120,000 multiple times. However, there is still a lot of bite from its support levels below, which could be its saving grace.
As the analyst explains, the fact that the support continues to hold shows that there is still a lot of buying going on for Bitcoin. This puts the support very tight around this area, but also makes it a dangerous territory for the bulls. It is possible that there is a sweep back to these lows, and Thomas explains that such a move WOULD engineer sell-side liquidity.
There is also a Fair Value Gap (FVG) at the $121,000 level, which continues to be defended. This is where most of the resistance has come from, pushing the price back below $118,000 multiple times already. Thus, this FVG is the next level to reclaim in the campaign for new highs.
Bouncing Back From Lows
If the sweep back toward the lows is completed, it is not entirely bearish for the Bitcoin price and could, in fact, be the move that helps to trigger the next wave of uptrend. The analyst explains that buyers would have to step back in at this level, with support sitting firmly at $116,000. This accumulation during consolidation would be inherently bullish.
Looking back at the FVG, the analyst explains that it could act as a magnet if the price begins to rise again. Nevertheless, all of this depends on the bitcoin price dipping back to support and then bouncing off again. The sweep of liquidity at the lows and the bounce would offer confirmation that the price is going to keep trending upward.
However, there is still the possibility of a price breakdown from here. Thomas points to an invalidation of the bullish thesis if support at $116,000 fails to hold and there is no immediate recovery. “Bitcoin remains locked in a clear range, and until the breakout happens, the edges of that range offer the best trading opportunities,” the analyst explained.
