Bitcoin Price Eyes $120K After Breakout Above $118K
Bitcoin price rebounded from a low of $112,600 to trade at $118,236 after breaking a long-term descending trendline. The 4-hour BTC/USD chart shows a breakout above the 50-day SMA ($115,225) and 200-day SMA ($116,673), supported by an RSI of 62.97. Immediate resistance lies at $118,616, with a critical barrier at $120,000. On the downside, support levels are $116,673 and the $112,142–$111,350 zone. Traders may seek long positions on retests of $116,700–$117,000, targeting $120,000 and $123,500, while managing risk against a pullback to key supports in case of rejection. A daily close above $120,000 could pave the way to $130,000. The current technical setup favors further upside and positions Bitcoin for a potential new rally.
Bullish
Bitcoin’s breakout above a long-term descending trendline and key moving averages signals renewed bullish momentum. Historically, similar breakouts (e.g., April 2024 when BTC cleared its 200-day SMA) preceded significant rallies, as traders gained confidence and leveraged long positions. The RSI at 62.97 still allows room before overbought levels, suggesting upward potential. A sustained close above $120,000 would likely trigger additional buying, pushing toward $123,500 and potentially $130,000. Short-term, traders may see increased volatility around resistance zones, but the prevailing trend favors bullish market sentiment. In the long term, this technical setup could underpin a broader uptrend, attracting institutional and retail inflows.