BTC chart warns: $119.4K rejection may mark cycle top

As the larger part of the cryptocurrency market is consolidating from the weeks of positive movements, Bitcoin (BTC) is once again at a crucial crossroads, with analysts closely eyeing the $116K – $119.4K range as the battleground that could determine the next major move.

Indeed, a close above $117,300 would be a strong bullish confirmation, signalling that Bitcoin has the momentum to attempt a breakout toward higher levels, according to the analysis by popular crypto market expert Egrag Crypto shared in an X post on September 19.

At the same time, retesting support at $116,000 would still be a healthy pullback, helping build momentum before another push higher. Should Bitcoin manage to close convincingly above $119,400, Egrag Crypto believes this would be the clearest evidence yet that new all-time highs are on the horizon.

Cycle top or breakout?

On the other hand, the crypto analyst has noted that a rejection at $119,400 would raise the likelihood that Bitcoin’s cycle top is already in place – around $124,500. In this scenario, BTC dominance could begin to drop, opening the door for altcoins to shine. Historically, such Bitcoin pullbacks have acted as a springboard for sharp altcoin rallies, as capital rotates into higher-risk assets.

Furthermore, Egrag has suggested that a failed breakout attempt at these levels would make him more confident in shorting the original crypto asset and a wide range of altcoins, expecting a sharp correction once $124,500 acts as a ceiling.

For the time being, Bitcoin is changing hands at the price of $117,002.35, indicating a 0.22% decline on the day, an increase of 1.63% across the previous week, as well as an accumulated advance of 2.75% on its monthly chart, per the latest data.

All things considered, the analyst’s chart currently paints two clear paths. Either Bitcoin breaks decisively above $119,400 and sets the stage for fresh highs, or rejection at this key resistance signals the peak of the cycle and sparks a broader market correction.