Bitcoin $118.5K Trendline Retest to Decide Rally or Pullback
Bitcoin is retesting a broken ascending trendline near $118.5K after slipping below it last week. A daily close above $118.5K would validate the trendline flip to support and signal bullish continuation toward resistance at $121K–$123.2K. Failure to reclaim $118.5K risks a deeper pullback toward the 200-day moving average around $103.3K, a critical liquidity zone for buyers.
Traders should watch volume and daily close behavior to validate the Bitcoin trendline retest and differentiate a true breakout from a false move. A clear breakout with sustained volume may trigger trend-following entries, while rejection could lead to accelerated stops and liquidation of shorts.
The Bitcoin trendline retest at $118.5K is a pivotal moment; market reaction will set the tone for the next leg up or down.
Neutral
Bitcoin’s retest of the broken ascending trendline at $118.5K presents a balanced risk–reward scenario. A daily close above that level could confirm a bullish flip and mirror past breakouts—such as in March, when reclaiming a key trendline triggered a rapid rally toward $122K. Conversely, a clear rejection would reinforce resistance and likely accelerate a pullback to the 200-day moving average near $103.3K, as seen during the April correction. The equal probability of either outcome, coupled with uncertainty in volume and broader market sentiment amid macroeconomic headwinds, suggests a neutral impact. Traders should wait for confirmation through daily closing prices and volume spikes before adjusting positions. In the near term, this retest will dictate short-term momentum; in the longer term, it could either reinforce the established uptrend or extend the corrective phase.