Bitcoin Retests Broken Trendline Near $118.5K; Close Above Could Flip Bullish, Rejection May Target $103.3K

• Critical level: $118.5K

• Close above $118.5K could push price to $121K–$123.2K resistance band.

• Rejection risks a move toward the 200-day MA near $103.3K (key liquidity zone).

Bitcoin retest: Market eyes $118.5K — close above could reignite rally; failure risks pullback to $103.3K. Read analysis and next steps from COINOTAG.

What is the Bitcoin retest at $118.5K?

Bitcoin retest refers to BTC revisiting a previously broken ascending trendline near $118.5K. If price closes daily above $118.5K, the trendline may flip to support and validate bullish continuation; a clear rejection would reinforce resistance and increase downside risk toward the 200-day moving average at $103.3K.

How significant is a daily close above $118.5K?

A daily close above $118.5K is significant because it would confirm buyers reclaimed control after the recent breakdown. That confirmation typically leads to momentum continuation toward the next resistance band of $121K–$123.2K and can reduce selling pressure from short-term sellers.

• 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.

Why is this retest relevant to traders?

Retests validate whether a break is genuine or temporary. A confirmed flip of $118.5K to support would signal renewed buyer confidence and invite trend-following entries. Conversely, a rejection would signal persistent supply at that level and could accelerate stops and liquidations toward key moving averages.

Retest at a Critical Resistance Zone

Market commentary highlights that Bitcoin is retesting its broken trendline after a strong rally established higher highs. The cryptocurrency currently trades slightly below the $118.5K resistance zone near $116.9K, placing immediate emphasis on whether buyers can push a daily close above $118.5K.

The commentary 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.

How could Bitcoin reach $121K–$123.2K?

If Bitcoin secures a daily close above the critical resistance, the broken trendline would likely act as new support. That reclaim would suggest renewed market strength and could drive price toward the tested upper resistance band at $121K–$123.2K, where supply historically increased.

Under this bullish scenario, the recent breakdown would be reversed and trader confidence could recover, shortening the path toward higher targets if volume confirms the breakout.

Bearish Outlook: When does risk increase?

The bearish case materializes if Bitcoin fails to close above $118.5K. A clear rejection would confirm $118.5K as fresh resistance, marking the recent rally as a potential “dead cat bounce.”

Failure to reclaim this level could accelerate downside momentum toward the 200-day moving average near $103.3K, a technical zone where longer-term buyers may re-enter. Monitoring volume and daily close behavior is essential to differentiate a continuation from another leg down.

Frequently Asked Questions

What happens if Bitcoin closes above $118.5K on the daily chart?

A daily close above $118.5K would likely flip the former trendline to support, validating bullish momentum and increasing the probability of a move toward $121K–$123.2K over the following sessions.

What is the significance of the 200-day moving average at $103.3K?

The 200-day moving average near $103.3K is a widely watched long-term trend indicator; a move toward that level typically signals a deeper correction and identifies a potential liquidity zone for larger buy-side interest.

Key Takeaways

• Immediate level: $118.5K is the deciding threshold for trend direction.
• Bullish outcome: Daily close above $118.5K targets $121K–$123.2K.
• Bearish outcome: Rejection could target the 200-day MA near $103.3K.

Conclusion

Bitcoin’s retest at $118.5K is a pivotal inflection point that will determine whether the market resumes its prior uptrend or extends a correction toward the 200-day moving average. Traders should prioritize daily close confirmation and volume; COINOTAG will monitor price action and update guidance as developments unfold.