Bitcoin eyes $118K resistance, a level that could decide the fate of its current rally. Is a breakout or a pullback on the horizon? Let's dive in.
Bitcoin's $118K Price Cycle: Will It Break or Break Down?
Bitcoin is currently testing resistance levels, with $118,000 emerging as the critical price point. The question on every trader's mind: will Bitcoin break through, or face a deeper pullback? Let's break it down.
The $118K Resistance: Make or Break?
Market watchers have their eyes glued to the $118,000 mark. CasiTrades pointed out that Bitcoin has already tested the 0.5 retracement near $116K without showing the expected RSI exhaustion. This suggests one more push toward the 0.618 retracement zone, aligning perfectly with that $118K level.
However, a failure at this zone could signal a deeper retracement before any attempt at new highs. A successful break, on the other hand, could propel Bitcoin towards $120K–$122K, where exhaustion signals would be closely monitored. It's a nail-biter, folks!
Support Levels: A Safety Net?
On-chain data from Glassnode indicates a dense cost basis distribution around $110K–$114K. This is where a significant chunk of recent supply was acquired. Analysts believe this zone should act as a cushion if the price gets rejected from current levels. Think of it as Bitcoin's financial safety net.
The next major supply cluster sits near $117K, which could act as resistance if the price retests this level. Traders anticipate any failed breakout to pull back toward this support before forming the next major swing. The $118K–$122K range is therefore crucial in setting the next direction. It's all about the levels, baby!
Gold vs. Bitcoin: A Digital Showdown
While Bitcoin flirts with these levels, it's worth noting the broader market context. Bitcoin and gold are both reaching new heights, fueled by low interest rates, inflation, and global uncertainties. Some analysts even draw parallels between Bitcoin and gold, dubbing Bitcoin the "digital gold" of the 21st century. As September 8th, 2025 article mentioned, Bitcoin's surge past $115,000 grabbed attention. The correlation between Bitcoin and gold suggests a potential rally towards $167K–$185K in the months ahead.
The Cycle Continues
So, what's the takeaway? The next few days are critical for Bitcoin. A clear breakout above $122K could invalidate the macro correction idea completely, potentially opening the door to a new all-time high later in the cycle.
Final Thoughts: Buckle Up!
Whether Bitcoin breaks through or pulls back, one thing's for sure: it's going to be an interesting ride. Keep an eye on those key levels, and remember to trade responsibly. After all, in the world of crypto, anything can happen. So, buckle up, buttercups, and enjoy the show!
