Bitcoin Price Analysis: Consolidation Looms, Support Holds Near $110K

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BitcoinBTC (BTC) faces resistance around $120,000 but retains key support above $110,000 amid continued inflows into ETFs, setting the stage for consolidation.

Bulls hold key support, though challenges remain.

Inflow Strength Continues

Daily data from Farside Investors indicates a continuation of strength, with US-based Bitcoin ETFs recording $799.4 million in inflows on Wednesday. This is the tenth straight day of net inflows, highlighting sustained institutional and investor interest since July 2nd, when inflows surpassed $5.2 billion in total.

Lackluster Move but Robust Support

On Wednesday, buyers attempted to resume an upward trajectory but encountered resistance at the $120,000 level, which held firm despite a bullish wick indicating attempted higher price pushes. The key takeaway was that bears were unable to reclaim significant ground initially.

This suggests a consolidation phase may be approaching, potentially lasting several days to weeks.

BTC/USDT Daily Chart

Potential Continuation of Recovery

Previous near misses on $120,000 could initiate a deeper pullback currently tentatively watching the $113,528 (20-day EMA) area. A decisive test of the $110,530 multi-week support level is crucial.

If the price holds above $110,530, the wind may be behind the bulls, setting sights on revisiting the $120,000/$123,218 resistance zone.

Breaching the technically significant $120,064 level would be a critical sign of renewed buying pressure, potentially revisiting the higher resistance at $123,218.

Upside Targets

Should the bulls reclaim $120,000 and push beyond, the next potential targets are projected at $135,729 and long-term goal of $150,000.

Downside Risks

The immediate support guarding the current consolidation zone is $110,530. Breaking below this level would strengthen the bears’ case and expose lower targets, potentially toward $105,000.

A 4-hour chart shows reduced momentum, with the 20-day EMA flattening and the RSI hovering near neutral territory, suggesting a sideways consolidation pattern could materialize between $115,000 and $123,218.