Bitcoin (BTC) appears to be following a familiar pattern that could propel its price to $120,000, according to multiple analysts tracking the cryptocurrency’s recent price action. Despite hitting a one-month low near $100,000 amid the recent Trump-Musk feud that triggered nearly $1 billion in liquidations, technical indicators suggest BTC is preparing for its next major breakout.
Historical Pattern Points to Major Breakout
Crypto trader Coinvo has identified striking similarities between Bitcoin’s current price action and its movement during the 2024 rally. The analysis shows BTC following a predictable pattern of consolidation followed by significant upward momentum, much like the period preceding its Q1 2024 all-time high.
Key Technical Levels to Watch
The Cryptonomist has identified a bullish falling wedge formation developing over the past three weeks, with critical support at $101,000. A successful breakout above $105,000 could trigger a rally toward the $118,000-$120,000 range.
Market Structure Analysis
According to analyst Alex Clay, Bitcoin’s recent price action suggests accumulation below the “Broken Supply Zone,” setting up for what could be the “real breakout” toward $120,000. This analysis gains further credibility when considering major institutional buying pressure from players like Metaplanet.
Short-term Outlook
Market watcher Daan Crypto Trades suggests Bitcoin could range between current levels for the next two weeks, with $106,700 serving as a crucial resistance level. A break above this mark could signal the end of the current correction phase and the start of a new rally toward all-time highs.
FAQ Section
Q: What is the key resistance level Bitcoin needs to break?
A: The critical resistance level is $106,700, with $105,000 serving as an initial hurdle.
Q: How long might the current consolidation last?
A: Analysts suggest a 2-week ranging period before the next significant move.
Q: What’s the potential upside target if Bitcoin breaks out?
A: The immediate target range is $118,000-$120,000 based on current technical analysis.
As of this writing, Bitcoin trades at $104,224, showing a 2.6% increase over the past 24 hours.
