Bitcoin’s ( BTC ) explosive rally, which saw the asset hit a record high above $125,000, appears to be losing steam after reaching its final resistance level. As per an outlook by prominent online cryptocurrency analyst TradingShot , Bitcoin’s current state signals a potential short-term correction before the next major breakout. This projection is based on the technical formation where Bitcoin was rejected at the higher highs trendline around $126,000 that has guided price action since July 14. This same trendline has repeatedly acted as resistance, marking the peaks of previous rallies within Bitcoin’s ongoing three-month consolidation phase. Bitcoin price analysis. Source: TradingView In a TradingView post on October 7, the analyst noted that the current rejection mirrors earlier patterns seen in mid-July and mid-August, both of which triggered sharp retracements. At the same time, the four-hour Relative Strength Index (RSI) once again shows a bearish divergence, where momentum forms lower highs while Bitcoin’s price makes higher highs, a sign of weakening buying strength and a potential market top. From a technical standpoint, the correction could extend toward the 0.382 Fibonacci retracement level, near $119,500. This area has served as the minimum retracement level for all previous pullbacks within the consolidation structure. If Bitcoin can eventually break above this final resistance, it would confirm a technical bullish breakout and likely mark the start of a new upward trend. Bitcoin price analysis Meanwhile, Bitcoin has corrected by almost 2% in the past 24 hours, settling at $122,597 as of press time, while in the past week, the maiden digital currency is up 5%. Bitcoin seven-day price chart. Source: Finbold With technical indicators seemingly pointing to a possible price correction, some market participants suggest that as long as the asset sustains its value above $120,000, there’s room for further upside. Indeed, the possibility of retaining this support is gaining strength from institutional investors who continue to pump capital through exchange-traded funds ( ETFs ). Featured image via Shutterstock The post Bitcoin is set for a deeper pullback as BTC hits this final resistance appeared first on Finbold .
