Bitcoin Trades Near $112,500 Amid Resistance At $118,000:Can It Reclaim $124,000?

Bitcoin Holds Between $110,000 Support And $124,000 Resistance

Bitcoin trades at about $112,500 having lost 2.91% during the last 24 hours. This fall dragged the cryptocurrency below the $113,000 mark, which served as resistance in an earlier correction.

The trading range is currently supporting heavily at the ranges of between $110,000-$112,000 and the resistance is still accumulating at the $124,000 all time high point.

Bitcoin rose by over 9% in the first half of September, and hit a local high of almost $118,000 a month. This increase generated business though it was met with heavy selling. This caused the market to retreat, canceling prior gains and putting it below the support point.

Source TradingView

The incorporation phase has already created a solid trading band, and the defensive area is at the range of $110,000-$112,000. According to analysts, in case the level does not break, it may have another upswing towards $118,000 and even revisit the all-time high.

Resistance At $118,000 Blocks Short-Term Upside Momentum

The current price action of Bitcoin reveals a series of unsuccessful attempts around the $118,000 price ceiling. The orders placed by sellers in this area have provided a hindrance to any further advancement of the upside momentum. Any action beyond this limit might revert the mood back to the side of purchasers.

During the last seven days, Bitcoin was changing drastically between the price of $113,000 and $117,800. Such oscillations reveal the indecisiveness on the part of traders who are alert and observing the macroeconomic situation across the world as well as the data on the chain.

A continuing breakout of over $118,000 could be the gateway to a move of up to $122,000 and ultimately to $124,000.

When Bitcoin does not break through this threshold, it will be stagnant in its position as a sideways formation. Liquidity inflows are also being monitored by market participants which would then help in the strengthening of the rally.

Up to that point, resistance of between $118,000 and $124,000 has been keeping price gains at bay.

Market Capitalization Drops To $2.24 Trillion Amid Selling

The current fall lessened Bitcoin market capitalization by close to dominion of $110 billion to $2.24 trillion. The loss indicates the weak purchasing power and the growth of short-term selling. The volatility has increased and steep intraday moves have added to the uncertainties in the market.

Source CoinMarketCap

Irrespective of the demerit, analysts remain optimistic with institutional investors who are piling up Bitcoin at reduced levels. The long term holding patterns are consistent in the market data, however, price movements around the $115,000 range are sensitive to the short-term traders.

Should the momentum change to the upwards, Bitcoin may revisit $118,000 in a short time. A sustained movement at $122,000 would probably propel capitalization back to higher levels as it used to be.

On the other hand, the market may be pushed down further and capitalization pulled down further by a drop below $112,000.

Analysts Assess Scenarios Between $111,000 And $130,000

Bitcoin is trading around $115,625 in-day, whereby it has been observed to be resisting at $122,000 to $123,700.

In case of a price clearing up this zone, the analysts report that it might stretch its gains up to $130,000. This optimistic argument is based on the revived demand, as well as on the inflows of large-scale investors.

Conversely, it is indicated by analysts that a near-term threshold is $116,000. A fall below this mark may subject Bitcoin to fall to as low as $114,000 or even to $111,000 in a worst-case situation. These levels are attracting close attention of traders who are looking at them as an indicator of the general direction of the market.

Other predictions are still positive and it is estimated that Bitcoin may reach $175,000 dollars by year-end provided the momentum is improved.

Once the resistance at $118,000 is penetrated, the market becomes open to a retest at $124,000 and above, according to one of the market analysts.