Bitcoin ATH $118K to $117K: Dip Finished?

Bitcoin ATH $118K to $117K: dip finished? After hitting a new all-time high with RSI 80+, BTC rebounds from first support as bulls eye $120K next target. The current recovery to $117,585 raises the key question – is this a bounce for continued growth or part of a deeper corrective structure toward the 0.382 zone?

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Overall Bitcoin Price Structure

Bitcoin’s price structure demonstrates the completion of an impulse phase with a transition into a corrective wave. We observed the beginning of this strong movement from July 9 at $109.4K, through consolidation at $111-$112K to the final impulse to $118.3K. The impulse was quite powerful, so we encountered an inevitable correction with a sharp decline to $116.2K. However, we then saw a quick recovery to $117.5, indicating a rather tense situation and high volatility. Right now, we are observing a struggle for initiative between buyers and sellers.

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Bitcoin EMA and RSI

EMA-20 ($116,006). Crossed upward by price after the test. The slope angle is transitioning from vertical to horizontal – a typical reaction to impulse completion. Consistent consolidation above with restoration of the upward angle will open a direct path to $118.3K. A downward break with the angle turning negative will trigger acceleration to $114.9K.
EMA-50 ($113,604). Located noticeably below the current price, but the slope angle is strengthening. A downward break will activate mass retail long stops, opening targets of $112-$111K. An upward bounce from the test will form a classic re-entry point for the late cycle.
EMA-100 ($111,748). Located in the impulse start zone. The slope angle is moderately ascending, confirming the presence of accumulation at these levels. Consolidation below will break the weekly trend structure. A bounce will create a double bottom for a multi-week rally.
EMA-200 ($110,199). The last bull’s stronghold on the current timeframe. The angle is barely positive, and the line is just beginning to react to the movement. A downward break may shift the market into a bear market on H1. Holding above will preserve the long-term structure for movement to $125K+.

RSI

Current level 71.41, decline from the 80+ peak is occurring at a ~30 degree angle – controlled unloading without panic. Stabilization above 70 during price sideways movement may become an accumulation before the next impulse. A break below 65 will activate algorithmic momentum selling. Divergence is absent, but when testing $118,311 without exceeding RSI 80, a classic bearish divergence will form – a signal for distribution.

Bitcoin Fibonacci Key Zones

0.236 ($116,223.83). Broken and recovered – classic bear trap. A retest may clarify – a bounce will make continuation to ATH possible, a break will open the path to $114.9K.
0.382 ($114,932.30). Golden pocket for buyers. Institutional limit bids are concentrated here. A downward break may break algorithms and trigger a cascade to 0.5.
0.5 ($113,888.46). Center of trend movement. A bounce from here can still target $120K, while a break opens $110K.
0.618 ($112,844.62). Bulls’ last hope. Coincidence with the zone between EMA-50/100 creates triple support. However, a loss may become a break for the entire short-term uptrend.

Market Sentiment

We can say that we are now observing controlled greed with notes of uncertainty. Volume on the bounce from $116,223 exceeded the decline volume – institutions are accumulating. Funding rates remain positive — the main part of buyers are still in longs. Open interest didn’t show mass liquidations – strong hands are holding positions. The order book shows a supply wall at $118K and a vacuum to $120,000 above.