Bitcoin Holds Key Support Level
Bitcoin is currently trading around $120,000, showing a slight increase over the past day and about 10% growth during the week. The trading volume sits at approximately $64.2 billion. What’s interesting is that traders are closely watching whether this $120,000 level will serve as new support after Bitcoin managed a daily close above this important price zone.
I think this situation feels familiar. The current breakout pattern looks quite similar to what happened back in mid-August. Back then, when Bitcoin closed above $120,000, it eventually bounced toward the $124,000 all-time high. The way price behaves around this level might give us some clues about where things are headed in the short term.
Historical Pattern Repeats
Analyst Rekt Capital pointed out that Bitcoin has achieved a daily close above the $120,000 mark. This mirrors what happened in August when a similar close led to a successful retest of that same level as support, followed by a push toward $124,500. The chart shows both events marked with green circles, which makes the comparison pretty clear.
Right now, the price action seems to be repeating that same setup. If the $120,000 level holds firm, the market might aim for $123,350 and potentially beyond. But 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.
On the weekly timeframe, there’s talk about Bitcoin possibly entering what’s being called “Price Discovery Uptrend 3.” The long-term chart shows this pattern that started in early 2023, where the price breaks out, retests resistance as support, and then continues moving higher. This structure has repeated at multiple stages, and Bitcoin is now positioned at $120,000. A weekly close above this level could support continuation into new territory.
Potential Overbought Conditions
However, there might be some reason for caution. Analyst Ted Pillows noted that on the 4-hour chart, the RSI has reached 80.18, which is the highest level since July. This reading puts Bitcoin in overbought conditions on that timeframe. Usually, when we see such instances, they tend to result in either a correction or sideways price action for some time.
The RSI reading could suggest a pause or consolidation phase after the recent rally from below $110,000. It’s worth keeping an eye on, though I’m not entirely convinced it will necessarily lead to a major pullback.
Long-Term Outlook Remains Positive
Looking further ahead, 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 data, he’s considering the possibility of a 70% rise to around $203,530 by the end of 2025.
The chart indicates that the price remains well within the bounds of the channel, and the overall structure appears intact with no clear signals of a market top yet. It’s interesting to think about how factors like ETFs and broader adoption might influence this potential growth.
But honestly, past performance doesn’t guarantee future results, and markets can be unpredictable. Still, the current setup does look promising for Bitcoin bulls, provided the $120,000 support level holds.
