Why $120,000 May Be the Next Milestone

Recent analysis of Bitcoin prices indicates that the leading cryptocurrency remains in a positive trend following a rebound from a significant re-accumulation zone. With key structural support levels maintained and a bullish AB=CD pattern in progress, analysts are tracking a possible rise above $120,000, signaling a new record high.

Bitcoin Price Aiming for $122,000 Following AB=CD Formation

As per a technical evaluation by crypto analyst Weslad on TradingView, Bitcoin is closely following a clear bullish trend, which could lead to a rise towards $122,000. Currently valued at $109,747, achieving this all-time high would mark an 11.17% increase from present levels.

Related Insights

This positive outlook is based on a confirmed AB=CD pattern evident in the Bitcoin chart, indicating strong upside potential. The price of Bitcoin has recently retraced into a vital re-accumulation zone between $104,000 and $107,000—an adjustment the analyst interprets as a normal correction rather than a downturn.

Weslad notes that the current re-accumulation zone represents a price level where buyers are beginning to actively re-enter the market. As long as Bitcoin remains within or above this range, the bullish sentiment is projected to continue.

Presently, Bitcoin is trading well above the crucial psychological support level of $100,000, reinforcing its bullish outlook. The broader market structure still maintains its integrity within an Ascending Channel, supported by zones of demand seen on higher time frames.

According to Weslad’s insights, as long as Bitcoin holds firm within the range of $104,000 – $107,000, a notable ascent towards the 2.618 Fibonacci Extension close to $122,000 is possible. Furthermore, breaking through the $112,000 resistance is essential to confirm this next upward move, indicating a potentially stronger bullish momentum.

BTC Likely to Experience a Significant Pullback Prior to Breakout

With Bitcoin nearing local resistance around $111,000, Weslad cautions that a temporary setback may occur before the anticipated upward trend resumes. The TradingView analyst suggests that if the price is rejected at this level, traders should expect a potential re-test of the $107,000 – $108,000 area.

Related Insights

This area has functioned as a robust support level during recent consolidation periods and is anticipated to hold in the event of a minor pullback. Recently, Weslad acknowledged that this expected corrective phase has likely concluded, indicating that the market is now ready for the “true growth phase.”

With the base demand zone positioned around $86,000 – $91,000 and strong support near $96,000 – $99,000, Bitcoin’s overall framework remains bullish unless a significant decline below $100,000 occurs. Until then, market participants will remain focused on the $112,000 breakout level, which could catalyze a possible surge towards the anticipated $122,000 target.

Featured image from Getty Images, chart from Tradingview.com