Bitcoin Tests Key Support as Bulls Eye $118,000 Rebound

Bitcoin is currently showing mixed signals, with a bearish daily candle forming while traders closely monitor support levels for signs of strength.

Analyst Egrag Crypto highlighted that the 9-day EMA is playing a critical role, suggesting a potential bounce may be underway.

Bears Hold Control, But Support Levels Matter

At present, Bitcoin’s Volume Delta indicates that bears remain in control of short-term price action. However, Egrag points out that if the price dips into the $115,700 – $115,350 zone, bulls could step in with renewed buying interest. A successful rebound from this range might trigger momentum toward the $118,000 mark, reinforcing the broader bullish outlook.

200 EMA: The Bigger Picture Reset

Long-term traders are also watching the 200-day EMA, a level Bitcoin frequently retests during consolidation phases. Egrag notes that while a potential drop of $12,000 may seem steep, such resets often precede larger rallies. Historically, these pullbacks have cleared the way for Bitcoin to set up its “next big pump.”

Read More:

XRP Price Setup Strengthens as RSI Curvature Signals Potential Parabolic Move

Weekend Watch and Monday Close

Market watchers will keep a close eye on Bitcoin’s performance over the weekend. According to Egrag, the daily close on Monday could prove decisive in confirming whether bulls can reclaim control or whether further downside is likely before the next leg higher.

Outlook

For now, the roadmap appears clear: a bounce from the mid-$115K zone could send Bitcoin toward $118K quickly, while a deeper test of the 200 EMA may delay but not derail the bullish setup. As Egrag concluded, “time will tell.”