Bitcoin has started a strong upward move, breaking above $116,000 with bullish momentum. The price crossed above over $116,200 and $116,500 levels of resistance and showed buying strength. Bulls propelled BTC to a high at $117,920 before the market registered a short-term correction and dipped briefly below support levels at $117,200.
The downside correction tested the 50% Fibonacci retracement level from $115,247 to $117,920. Buyers held firm around $116,750 and prevented further dips. Bitcoin is trading at above $116,500 and the 100-hourly simple moving average, and is being supported by a bullish trend line formed at $115,800 on the hourly chart.
Crypto analyst Ali highlighted that Bitcoin may be forming the right shoulder of a head-and-shoulders structure. This classic technical formation often signals temporary weakness. It could trigger a dip toward $112,000 before buyers reenter aggressively. Market participants remain cautious but watchful of this potential setup.
In case the head-and-shoulders formation is completed, Bitcoin can rebound sharply. The analyst believed that a bullish retake can bring BTC to $130,000. Investors anticipate a breakout to begin a new upward phase within its ongoing bullish cycle.
Also Read | Bitcoin (BTC) 2025 Explosive Boom: Pre-FOMC
CryptoQuant contributor Arab Chain explained that Bitcoin is range-bound at $117,500 with large retail inflows. Whales are yet to show up for buying efforts. However, 0 to 0.001 BTC trades aggregated near 97,000 BTC inflows. 0.001 to 0.01 BTC inflows finished at about 719,000 BTC.
The spread indicates control by retail investors in the market. Many trades with small volumes have collectively influenced liquidity. Despite its small scale, retail trading has provided stability by positioning BTC near main resistance levels with minimal whale control.
Absence of large whale inflows reduces sharp volatility risk. There are no significant spikes noted for transfer volumes beyond 100 BTC. The retail participation provides equilibrium to Bitcoin. The bulls are defending $116,500, and investors are aiming at the $120,000 ceiling.
If momentum persists and technical buying levels support, Bitcoin may break out to the upside. The market remains constructive, supported by small investors and cautious optimism surrounding a potential breakout.
Also Read | Cardano (ADA) Gets Massive Exposure as OpenBank Rolls Out Powerful Integration
Also read: Hedera (HBAR) Shows Strength: Is $0.40 the Next Breakout Level?
