Bitcoin Holds Above Key $120,000 Level
Bitcoin was trading around $120,000 at press time, showing a slight increase over the past 24 hours and about 10% growth during the week. The trading volume sits at approximately $64.2 billion, which seems pretty substantial. What traders are really watching now is whether this $120,000 level can actually hold as support after the daily close above it.
I think there’s something interesting happening here. The current price action looks similar to what we saw back in mid-August. Back then, a daily close above $120,000 led to a successful retest of that level as support, followed by a push toward $124,000. That was the all-time high at the time. Now we’re seeing what appears to be a repeat of that setup.
Technical Patterns and Historical Comparisons
Analyst Rekt Capital pointed out that Bitcoin has performed a daily close above the $120,000 mark, mirroring the August move. The chart shows both events marked with green circles, which makes the comparison pretty clear. If this level holds as support, the market might aim for $123,350 and potentially beyond.
But here’s the thing – if it fails to hold, there are nearby support levels around $117,288 and $114,249 that could come into play. Rekt Capital also mentioned that Bitcoin is testing a 2.5-month downtrend line near $119,000, which adds another layer to the technical picture.
On the weekly timeframe, there’s talk about Bitcoin possibly entering what’s being called “Price Discovery Uptrend 3.” This pattern started back in early 2023, where the price breaks out, retests resistance as support, and then continues higher. It’s happened multiple times already, and now Bitcoin is positioned at $120,000 again. A weekly close above this level could support continuation into new territory.
Momentum Indicators and Potential Slowdown
There might be some caution needed though. Analyst Ted Pillows noted that on the 4-hour chart, the RSI has reached 80.18, which is the highest level since July. That puts Bitcoin in overbought conditions on that timeframe. Usually, such high RSI readings result in either a correction or sideways price action for some time.
This could mean we might see a pause or consolidation phase after the recent rally from below $110,000. It doesn’t necessarily mean the uptrend is over, but perhaps the momentum might slow down a bit.
Long-Term Outlook and Year-End Targets
Looking further out, Crypto Seth shared a long-term chart showing Bitcoin inside a growth channel. He pointed to past rallies in the final quarter of previous cycles – 368% in 2017 and 83% in 2021. Based on that historical pattern, he’s considering the possibility of a 70% rise to around $203,530 by the end of 2025.
The chart shows the price remains well within the bounds of the channel, and there aren’t any clear signals of a market top yet. With all the ETF developments and increasing adoption, maybe another 70% move isn’t completely out of the question. But of course, past performance doesn’t guarantee future results, and the market can always surprise us.
The structure appears intact for now, and traders will be watching closely to see if history repeats itself or if we get a different outcome this time around.
