Bitcoin Sustains Rally Above $117K As Key Technical Levels Hold Firm

Bitcoin price broke out of a descending channel and now trades above $117,500.

Support stands at $116,847, with resistance forming near $118,667.

Ichimoku Cloud remains supportive of the current price structure.

Bitcoin has continued to rise after surging past a long-standing falling channel, holding at over $117,000 levels. The 12-hour chart shows a forceful upside movement that broke past the top of the channel in early July. This came after a multi-week consolidation period in which price fluctuated between clearly defined resistance and support lines.

The breakout has witnessed a sharper rally pushing the price to close to its short-term zone of resistance. As of writing, the price of Bitcoin is around $117,566.90, up 0.1% from a 24-hour price increase.

Price Structure Holds Firm Above Channel Resistance

Since the breakout, Bitcoin has remained above the previous top trendline. Price recently hit an intraday high of $117,876.57, a dramatic increase from previous consolidation levels. Support has formed at $116,847, the short-term base which has yet to be tested since the breakout. Resistance appears to be forming at $118,667, the next key level to observe. While price action remained elevated, a test of the breakdown point to validate the breakdown level, which was channel resistance, has yet to happen.

This repeated consolidation near the highs signifies a re-occurrence of the dominant market structure, especially in case there isn't a breakdown below the new support. Furthermore, price action continues to exhibit higher highs and higher lows, which means upward momentum is still present. The consistent upward movement, with existing technical levels, presents a tight but defined short-term trading range.

Ichimoku Cloud Reinforces Near-Term Trend Structure

In addition to the price breakout, the Ichimoku Cloud supports the current bullish momentum. The cloud appears to offer a cushion below the current price zone. It began widening after the breakout, with the span turning green and extending through the coming sessions. This indicates that support is likely to persist between $110,000 and $114,000 if a correction occurs.

Bitcoin has remained above the cloud base since early July, maintaining upward structure without significant dips back into the cloud region. This reinforces the market’s present direction. Furthermore, price candles continue forming above the cloud, underscoring the separation from previous compression zones.

BTC/USDT Market Remains Range-Bound Within Fresh Levels

Currently, the pair BTC/USDT is trading in a certain 24-hour range. The low at $117,141.13 and the high at $117,876.57. Although price action has not changed significantly over the past 24 hours, volume still remains active, hence keeping the pair afloat.

The second area of focus is if BTC can break above the $118,667 resistance or if price will return to support levels around $116,847. Until then, the market remains in watch as price action happens close to these key levels.