Bitcoin Bulls Target $120K as All-Time Highs Appear on the Horizon

Bitcoin Momentum Ignites as Bulls Challenge Key Resistance

The cryptocurrency market is buzzing with renewed excitement as Bitcoin (BTC) makes a powerful move, charging towards the significant $120,000 mark. After a period of consolidation lasting over six weeks, bullish momentum has taken control, fueling speculation that new all-time highs are not just possible, but imminent. This resurgence marks a critical shift in market sentiment, with traders and analysts closely watching to see if Bitcoin can finally enter a new phase of price discovery.

As the Wall Street open saw continued buying pressure, BTC price action solidified its gains, pushing past previous resistance levels and setting the stage for a potential breakout. The prevailing narrative has shifted from cautious observation to optimistic anticipation, with key technical indicators aligning to support a bullish outlook.

The Downtrend Is Over: Key Technicals Flash Green

For weeks, Bitcoin’s price has been in a corrective phase, but recent developments suggest this period has decisively ended. One of the most significant signs is Bitcoin’s ability to chart a higher high on the daily timeframe. In technical analysis, this is a classic indicator that a downtrend has lost its grip and an uptrend is beginning to form.

Market analysts are pointing to several key confirmations of this trend reversal:

• Flipping Resistance to Support: Bitcoin has successfully closed above the crucial $117,300 level. This area, which previously acted as a ceiling, is now expected to serve as a strong foundation for the next leg up. Even if a minor pullback occurs, analysts believe this level will likely hold as support.
• Breaking Through Key Barriers: The $118,000 mark was seen as another significant hurdle. With price action moving confidently past this point, the path towards the main challenge at $120,000 looks clearer.

Reading the Indicators: More Than Meets the Eye

While the price action itself is telling, a deeper look at the underlying indicators reveals the true strength behind this rally. The market’s current trajectory shows that Bitcoin Bulls Target <$120K> with strong technical backing.

One of the most talked-about indicators is the Relative Strength Index (RSI). On shorter timeframes, the RSI has entered what is known as “overbought” territory, hitting levels not seen since mid-July. Typically, this can signal that a pullback is due. However, analysts argue that the context is different this time. The recent price surge was preceded by multiple bullish RSI divergences on various timeframes. A bullish divergence occurs when the price makes a new low while the RSI makes a higher low, suggesting that bearish momentum is waning and a reversal is likely. This hidden strength is now playing out in the market.

Furthermore, Bitcoin’s price has crossed above its Anchored Volume-Weighted Average Price (AVWAP). In simple terms, the AVWAP represents the average price that traders have paid, weighted by trading volume, from a specific starting point. When the price moves above the AVWAP, it signifies that the average trader from that point is now in profit, which typically reduces the desire to sell and adds to the bullish momentum.

The Final Hurdle: All Eyes on Price Discovery

With multiple technical signals aligning and sentiment turning overwhelmingly positive, many believe the only thing missing from the perfect bullish setup is “price discovery.” Price discovery is the phase that begins when an asset breaks its previous all-time high. With no historical resistance levels or past sellers to contend with, the asset is free to explore new price ceilings, often leading to rapid and explosive upward moves.

The sentiment among prominent traders is one of confident expectation. The six-week correction is viewed as a healthy reset that has shaken out weak hands and built a solid base for a sustainable move higher. As Bitcoin knocks on the door of $120,000, the entire market holds its breath, anticipating the fireworks that could follow a definitive break into uncharted territory.