Bitcoin Price Surges To New Peak – What Could Fuel The Next Leg Up?

Bitcoin price started a strong increase and traded above $126,000. BTC is now consolidating gains and might aim for more gains in the short term.

• Bitcoin started a major increase above the $125,000 zone.
• The price is trading above $124,000 and the 100 hourly Simple moving average.
• There is a short-term bullish trend line forming with support at $124,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it clears the $125,500 zone.

Bitcoin Price Sets New ATH

Bitcoin price managed to stay above the $122,000 zone and started a fresh increase. BTC settled above the $123,500 resistance zone to start the current move.

The bulls were able to pump the price above the $125,000 and $125,500 levels. They even cleared the $126,000 level. A new high was formed at $126,198 before there was a minor pullback. The price traded below the 23.6% Fib retracement level of the recent wave from the $122,230 swing low to the $126,198 high.

Bitcoin is now trading above $124,000 and the 100 hourly Simple moving average. Besides, there is a short-term bullish trend line forming with support at $124,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

Immediate resistance on the upside is near the $125,250 level. The first key resistance is near the $125,500 level. The next resistance could be $126,200. A close above the $126,200 resistance might send the price further higher. In the stated case, the price could rise and test the $126,500 resistance. Any more gains might send the price toward the $128,000 level. The next barrier for the bulls could be $130,000.

Downside Correction In BTC?

If Bitcoin fails to rise above the $125,500 resistance zone, it could start a fresh decline. Immediate support is near the $124,200 level and the trend line. The first major support is near the $123,250 level or the 76.4% Fib retracement level of the recent wave from the $122,230 swing low to the $126,198 high.

The next support is now near the $122,500 zone. Any more losses might send the price toward the $121,200 support in the near term. The main support sits at $120,500, below which BTC might struggle to recover in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $124,200, followed by $123,250.

Major Resistance Levels – $125,500 and $126,500.