Bitcoin retraces below $117k after hitting a new ATH: check forecast

The cryptocurrency market had a positive start to the week but has given away most of its recent profits.

Bitcoin, the leading cryptocurrency by market cap, hit a new all-time high of $123k on Monday thanks to growing institutional demand.

However, BTC has since lost 5% of its value and now trades below $117k. The market might be undergoing a retracement before it resumes its rally.

BTC dips below $117k as investors focus on upcoming crypto bills in the US

Bitcoin is currently undergoing a correction after hitting an all-time high of $123k on Monday.

It is down 5% in the last 24 hours and now risks dropping below $116k if the bearish trend continues.

The negative performance comes as investors turn their attention to the upcoming crypto regulation bills in the United States.

In an email from XBTO’s Investment Officer, Javier Rodriguez-Alarcón, the expert stated that the legislation could be crucial to the future of the crypto market. He stated that,

Javier added that this cycle still appears early, and the next leg up will depend on whether institutional interest continues to deepen as legislative, fiscal, and monetary tailwinds converge.

BTC could retest the $110k resistance level

The BTC/USD 4-hour chart is bullish and efficient despite losing 5% of its value in the last 24 hours.

The ongoing retracement could see Bitcoin sweep the Transactional Liquidity (TLQ) at $110k before rallying higher.

On-chain data shows that BTC’s Exchange Netflow (the difference between BTC flowing into and out of the exchange) is positive and has hit a level last seen on February 25.

The increase in inflows suggests that investors are likely sending BTC to sell and could contribute to the short-term retracement. 

If BTC continues to face a correction, it could extend the decline to the next resistance level (TLQ) at $110,851. 

The Relative Strength Index (RSI) reads 67, pointing downward after rejecting its overbought conditions a few hours ago.

This suggests that the bulls are losing momentum. If the RSI continues to decline and closes below the neutral level of 50, the BTC/USD pair could drop lower. 

The MACD line is also approaching the neutral zone, indicating that the bullish bias is fading. 

However, if BTC recovers and closes above the $120,000 level over the next few hours, it could extend its rally to take out its all-time high price of $123,218.