Bitcoin Stuck Below $123.4K, Breakdown Coming?

Key Insights:

• Bitcoin fails to break $123.4K, keeping short-term momentum stalled in a tight consolidation range.
• Support near $121K remains intact as traders watch for a decisive move to confirm direction.
• Fibonacci levels suggest possible targets above $125K if price closes firmly above the resistance zone.

Bitcoin was trading in a tight range as it failed to clear $123,400—a level that has turned into firm resistance. The current price is around $122,625, reflecting minimal change in the past 24 hours, with a 3% increase over the last week. Since the start of October, the price has been unable to close above this mark on the 4-hour chart, showing clear rejection on multiple attempts.

$123.4K Keeps Price in Check

Repeated failure to break above the weekly open has placed short-term pressure on Bitcoin. The zone between the Monday low and $123,400 has seen consistent back-and-forth price action, with no breakout in sight. Until this level is cleared, upward momentum remains capped.

If this resistance holds, traders may look for support retests below $121,000. A breakdown through this range could shift short-term bias toward the previous month’s high around $118,000. On the flip side, closing above $123.4K could trigger a move toward recent highs near $126,000.

Fibonacci Levels Support Higher Move

According to trader Tara, Bitcoin recently held above the macro 1.618 Fib level near $121,068. This zone now acts as support and may serve as the base for the next wave up. 

The trader posted.

“Binance has now turned its macro 1.618 into support which is a really good sign,” 

BTC is now sitting near the 0.118 Fib line at roughly $123,749. A breakout above that level may set the stage for targets near $125,826 and $126,953. These levels fall in line with the ongoing Elliott Wave count, which suggests another leg higher if momentum picks up.

RSI Neutral, Structure Holds

The RSI on the 4-hour timeframe is around 56, showing no clear momentum either way. Price remains above the 14-period moving average, which helps maintain a short-term positive structure. Still, without a strong close above $123.7K, bullish setups remain on hold.

Tara also commented, 

“These next couple waves are critical to the future of BTC,” 

pointing to the importance of the structure forming now. If this pattern plays out, the $130,000 zone becomes a possible target for the next major move.

Market Waits for Direction

Bitcoin remains in a sideways phase, with resistance just above and support just below. Price needs a strong breakout to set the next direction. Until then, the range between $121,000 and $123,400 will likely guide short-term action.