Bitcoin Price Retreats After Testing $120,000 Level

On July 24, the price of the leading cryptocurrency retreated from the resistance level of $120,000. This may indicate selling by participants holding positions at this threshold.

At the time of writing, digital gold is trading at $115,715 (-2% for the day), according to CoinGecko.

Following the unsuccessful breakout attempt, the net capital outflow from spot Bitcoin ETFs in the US amounted to $285.2 million over three days, according to Farside Investors. This may suggest short-term investor caution.

A positive factor remains the price holding above $115,000. The asset is squeezed between the 20-day simple moving average (SMA) at $115,961 and resistance at $120,000.

Forecasts

The rising 20-day SMA and the relative strength index (RSI) in the positive zone indicate potential for growth. If buyers can push the price above the resistance zone of $120,000-$123,218, Bitcoin will resume its upward trend. The next targets will be $135,729 and $150,000.

The first sign of weakness will be a close below the 20-day SMA. This will signal profit-taking by buyers. In this case, the price may drop to the support level of $110,530. A break of this level will strengthen the sellers’ position.

Back in earlier reports, on-chain analyst James Check believes that the leading cryptocurrency is unlikely to reach $200,000 this year.