Bitcoin Faces Critical Resistance: Daily Close Above $118.5K Could Shift Momentum

Bitcoin is retesting a broken ascending trendline, with $118.5K identified as the critical level that could determine the next market direction.

A strong daily close above $118.5K may flip the trendline back into support, driving momentum toward $121K–$123.2K resistance levels.

Failure to reclaim $118.5K could accelerate selling pressure, with the 200-day moving average at $103.3K emerging as the next target.

Bitcoin is at a decisive point after breaking below its ascending trendline and retesting it. The market awaits confirmation of direction at $118.5K.

Retest at a Critical Resistance Zone

According to a tweet from Coin Signals, Bitcoin is retesting its broken trendline after a strong rally that established higher highs. The cryptocurrency now trades near $116.9K, slightly under the $118.5K resistance level.

The tweet noted that a daily close above $118.5K would flip the structure bullish. Such a move would confirm that buyers regained control, strengthening the case for continued upward momentum. This level is currently seen as the line separating continuation from correction.

Bullish Scenario Toward Higher Targets

If Bitcoin secures a close above the critical resistance, the trendline would shift back into support. This reclaim would suggest renewed market strength and could drive price toward the upper resistance band at $121K–$123.2K.

Under this bullish setup, the recent breakdown would be reverse and could rekindle some confidence among traders looking for another burst of momentum. If it stayed above resistance long term, the previous broader uptrend may be restored, and selling pressure could decrease.

Bearish Outlook Signals Possible Deeper Pullback

The bearish case remains if Bitcoin fails to close above $118.5K. Coin Signals noted that rejection would confirm the level as new resistance, marking the rally as a “dead cat bounce.”

Such a failure could accelerate downside momentum, targeting the 200-day moving average near $103.3K. That zone is viewed as a key liquidity area where strong demand may reemerge. For now, Bitcoin remains caught between regaining bullish momentum and extending its correction.

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