Bitcoin remains inside a bullish channel and price is now testing the $109000 resistance for the second time.
The RSI shows a divergence signal but price is still above support and holds strength across short-term levels.
If Bitcoin breaks past $109157 the next area of interest could be near the $112000 level in the coming days.
Bitcoin (BTC) is making its second attempt to break through the $109,000 resistance as price momentum holds within a rising trend. According to TommyJR’s analysis, BTC remains above $105,900 and continues trading in a bullish structure. A strong parabolic recovery from March lows appears to echo the late 2020 to early 2021 rally model.
Source: X BTC Price Action Mirrors Historical Rally Behavior
The chart illustrates a parabolic curve that formed earlier this year, followed by a correction and a sustained rebound. The shape and timing closely match Bitcoin’s previous surge between late 2020 and early 2021. This historical reference is labeled directly on the chart as "Late 20 / Early 21 Pre Pump / Correction."
As of May 20, 2025, Bitcoin trades near $105,959. The price is climbing within a green ascending channel and is targeting $109,157. A potential breakout above this level could bring BTC closer to the projected upper limit of $112,000.
A white comparative line running through the chart shows BTC's historical movement overlaid on the current trend. The matching behavior between both price structures increases confidence in this model. It supports the theory that Bitcoin may be preparing for another aggressive leg higher.
Technical Structure and RSI Indicators Present Mixed Signals
The chart contains several structural indicators including a green ascending trendline, a yellow curve showing a macro reversal, and a red zone marking resistance. This resistance area lies just below $112,000, with BTC currently testing its lower boundary.
The RSI (Relative Strength Index) at the bottom of the chart shows a value near 59.34. A red trendline drawn across the RSI suggests bearish divergence. This occurs when price forms higher highs while RSI forms lower highs, indicating weakening momentum.
Despite this divergence, the upward price channel remains intact. Traders often view divergence as a cautionary signal, not a reversal confirmation. As long as the support trendlines hold and volume remains strong, the overall bias remains toward the upside.
The green support trendline has provided solid footing during April and May. It connects multiple key swing lows, offering a guide for price stability. BTC has respected this structure through every test over the past 60 days.
Will Bitcoin Break $109K and Trigger the Next Parabolic Surge?
The primary question now is whether Bitcoin will finally break through $109,000 and accelerate toward $112,000. Price has made a second attempt at this level, following a rejection in early May. This repeat test suggests strong buying interest and possible accumulation. If BTC closes above $109,157, traders may begin targeting the psychological $112,000 level.
The overall structure remains bullish, but RSI divergence and resistance clustering may create short-term hesitation. Historical comparisons suggest this move mirrors Bitcoin’s earlier expansion phases. That pattern led to significant upside once resistance was cleared.
Traders are monitoring this level closely, as a breakout could trigger rapid upside continuation. If BTC fails again, it may return to the lower support of the rising channel. Until then, momentum remains pointed upward with technical confirmation needed at the $109K zone.
