Bitcoin ($BTC) It’s back in the spotlight as the price recovered to $118,236 after a brief fall to $112,600 earlier this week. The rebound was supported by a break above the long-term descending trendline, rekindling bullish sentiment. Traders are currently asking big questions. Can BTC set the stage for a new rally, eventually surpassing $120,000?
Bitcoin Chart Analysis: What happens to BTC Coins?
The 4-hour BTC/USD chart shows a clear breakout from the downward resistance line, which has been limiting prices since mid-July. The breakout coincided with $116,673 at both the price exceeding the 50-day SMA at $115,225 and the 200-day SMA.
The RSI is currently 62.97, indicating that BTC has room to push high before entering the acquired territory. However, $118,616 remains a strong resistance level. Daily closings above this zone could open doors heading over $120,000.
BTC/USD 4-hour chart – TradingView
Key support and resistance levels
- Immediate resistance: $118,616
- Major resistance: $120,000
- Immediate support: $116,673 (200 SMA)
- Main support: $112,142 – $111,350
If $bitcoin cannot be held above $116,673, then strong purchasing rights could drop towards the $112,000 zone where strong purchase rights could appear again.
Bitcoin price forecast: market outlook and future prices for BTC
The breakout exceeds trend line resistance is a powerful technological development. As long as BTC maintains support of over $116,000, the path with minimal resistance remains upwards. Having confirmed it exceeds $120,000, we can set up a push towards $123,500 and potentially $130,000 over the next few weeks.
Trading Strategy Considerations: How to Trade BTC Today
Traders can look for longer entries in retesting breakout levels ($116,700-$117,000), with goals reaching $120,000 and close to $123,500. Risk management remains important as a rejection at $120K can cause a pullback to lower support.
Bitcoin’s recent rebound has taken control of the Bulls, but the $120,000 fight will determine whether this is the beginning of a major rally or simply a short-term spike. For now, the technical setup is even more upside down.
