Bitcoin surged after breaking out of a falling pattern and touched $122K above critical resistance zones.
The RSI moved close to 80 which confirmed strong price movement supported by a multi-week trendline.
Key Fibonacci levels at $113K and $117K acted as support and gave Bitcoin a clear range for future moves.
Bitcoin surged to $122,500 following a breakout from a falling channel, marking a new local high above its recent consolidation range. The digital asset rallied after reclaiming key Fibonacci retracement levels between $113,600 and $117,300, triggering bullish sentiment among traders. This pattern breakout aligned with bullish RSI behavior and long-term trendline support visible in the multi-month chart.
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The move occurred after BTC previously hovered between $105,000 and $115,000, forming a clear falling wedge. This pattern, bounded by parallel declining lines, typically precedes upward moves. Confirmation came when price action broke above the upper trendline with increasing volume.
The RSI on the hourly timeframe neared overbought territory, peaking just below 80, but continued trading within bullish ranges. The pattern formed since June suggested consolidation before this latest upside. Historical comparisons indicate similar structures yielded double-digit rallies in past cycles.
Technical Levels Show Fibonacci Precision in Price Rejection Zones
Key Fibonacci levels between $113,600 and $117,300 played a crucial role in the latest breakout structure. The .618 retracement at $113,600 and the .382 level at $117,300 acted as strong areas of interest. These levels represented retracement points from a prior impulse wave that pushed BTC above $120,000 earlier this month.
Traders tracked these levels closely using the hourly chart on Coinbase. After the price hit $117,300, minor rejections followed before BTC found strength to push higher. Price movement reflected disciplined reactions to each Fibonacci line, giving structure to an otherwise volatile range.
The 0.5 midpoint level at $115,469 also functioned as a pivot during consolidation. Once the breakout occurred, these zones transformed from resistance into support. This flip offered further confidence for market participants anticipating higher highs.
Institutional Activity and Historical Divergences Align With Momentum
The broader chart also reflected significant institutional positioning and accumulation zones. A long-term upward sloping green trendline, dating back to early 2024, intersected close to $80,000, providing macro-level support. Bitcoin’s price trajectory since April has followed a rising arc with periods of consolidation.
A red RSI divergence from May coincided with a correction, while the recent bullish divergence offered a different signal. The purple RSI oscillator showed strength despite temporary dips, aligning with prior momentum-based reversals. The indicator helped confirm that underlying strength supported the move.
The yellow trendline from the ascending arc converged into a new resistance, now acting as short-term support. Volume indicators, while not shown, were implied to be consistent with breakout behaviors, adding technical confirmation. This pattern has historically attracted both institutional and retail inflows in past bullish cycles.
