Bitcoin (BTC) Price Analysis: Momentum Returns but $118K Remains the Deciding Level

Bitcoin is currently trading just above $113,000 and appears to be gaining momentum on the lower timeframes. As highlighted in our previous analysis, the price continued to fall and was headed towards $107,000. However, the bulls stepped in quickly just above that level and managed to push the price back above the $112,000–$113,000 resistance zone, with a bullish divergence playing out on the 4-hour timeframe. At this stage, things can still go either way for Bitcoin. Momentum has started to build, but the price needs to move higher to confirm bullish continuation. Let's take a look at the latest BTC charts to see where the price could be headed in the short term.

Our Bitcoin Price Prediction Summary

• Bitcoin bounced off support and reclaimed the $112K to $113K zone, helped by a bullish divergence on the 4H chart.
• A retest and bounce from $113K could complete an inverse head and shoulders and set up another push toward $115K.
• The real confirmation sits at $118K on the daily timeframe. A breakout there would shift momentum firmly in favor of the bulls.

Analyzing the Bitcoin Charts

4H Momentum and Bullish Divergence

Looking at the latest 4-hour charts, the price managed to bounce from the $109,000 region with enough momentum to flip the $112,000–$113,000 resistance zone once again. The key detail here is the bullish divergence BTC printed on the RSI, which played a major role in driving this move upward. At the moment, Bitcoin is facing resistance around the $115,000 level, and with the RSI entering overbought territory, a brief pullback or a few red candles is possible before the next attempt higher.

Inverse Head and Shoulders Setup

Another key thing to watch is the $113,000 region. If the price bounces from that area again in the immediate short term, BTC will end up forming an inverse head and shoulders pattern, which is a bullish setup. If that plays out, the $115,000 resistance will likely be tested again, and this time a breakout becomes far more probable. Should the pattern confirm, our short-term Bitcoin price prediction will be leaning bullish with higher targets in view.

Daily Resistance and Hidden Divergence

On the 1-day timeframe, the main level to focus on is $118,000. Bitcoin has remained below this area, and with the recent momentum, a clear move above this level is needed to confirm a bullish trend. The higher low that has formed is a positive sign and shows buyers are trying to regain control. In the short term, a bounce from the $112,000 to $113,000 region is still likely, and if that plays out, $118,000 becomes the next target. For bullish continuation, the price needs to break this level and turn it into support. There is also a hidden bullish divergence on this timeframe, which adds strength to the bullish scenario. If the price gets rejected again, momentum will fade and BTC could struggle to defend the $112,000 to $113,000 support area, leaving the market vulnerable to further pressure.

Final Takeaway: What is Next for Bitcoin?

Bitcoin has shown signs of recovery with momentum picking up on lower timeframes and key support levels holding. The bullish divergence on the 4-hour chart played a key role in the recent bounce, and as long as the $112,000 to $113,000 region holds, short-term sentiment stays intact. The real test now sits at $115,000 and more importantly at $118,000 on the daily timeframe. A clean break and flip of $118,000 into support would confirm bullish continuation and open the way for higher targets. However, rejection at this level would slow momentum and put pressure back on the current support zone. For now, indicators suggest cautious optimism, but confirmation will depend on how Bitcoin reacts to these resistance levels in the coming sessions.