Bitcoin is making waves again, bouncing back to $118,236 after a brief dip to $112,600 earlier this week. The move shattered a stubborn downtrend line that had been boxing in the price for weeks â and itâs got traders buzzing. The big question now: Can BTC smash through $120,000 and ignite the next leg of the bull run?
BTC Technical Picture â Bulls Back in Control?
On the 4-hour chart, Bitcoin has cleanly broken out from the descending resistance line thatâs been in play since mid-July. Even better, price is now trading above the 50-day SMA ($115,225) and the 200-day SMA ($116,673) â a double bullish signal suggesting momentum is shifting to the upside.
The RSI sits at 62.97, leaving plenty of room before the overbought zone. But hereâs the hurdle: $118,616. A daily close above this line could open the door to $120K â and beyond.
đ Key Levels to Watch:
Immediate Resistance: $118,616
Major Resistance: $120,000
Immediate Support: $116,673 (200-SMA)
Strong Support: $112,142 â $111,350
If Bitcoin loses $116,673, a drop toward the $112K demand zone is likely â but thatâs where buyers have stepped up before.
The Road Ahead â Potential BTC Scenarios
Breaking the trendline resistance is no small feat. Hold above $116K, and the bias stays bullish. Clear $120K, and targets open up at $123,500 â with $130,000 in sight if momentum holds.
đŻ Trading Playbook for Now:
Savvy traders may watch for a retest around $116,700â$117,000 for long entries, aiming toward $120K and $123,500. But beware: a sharp rejection at $120K could spark a pullback.
Bottom Line:
Bitcoinâs recovery isnât just a bounce â itâs a statement. The bulls are back, but the $120K ceiling is the real battleground. Break it, and we might just be looking at the launchpad for the next big run.
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