Bitcoin Poised for Move to $120,000 as Support Holds
With the bullish trend still intact and support levels holding, Bitcoin could be preparing for an impulsive move to the $120,000 extension target.
Bitcoin (BTC) has entered a new price zone and is showing strong signs that the uptrend is far from over. After hitting $111,800, price action has pulled back, but not in a way that invalidates the structure. In fact, the retracement appears healthy and technically sound, offering a potential setup for another leg higher.
Key technical points
- Price has retraced into a key support level at $106,500, which aligns with two major moving averages and the 0.618 Fibonacci retracement.
- Structure remains bullish, with a clear sequence of higher highs and higher lows from the $91,500 swing low.
- Fibonacci extension from the most recent impulse projects a target of $120,000, offering a technically sound next milestone.
Since establishing the $111,800 high, Bitcoin has pulled back into a zone that now acts as critical support. This region around $106,500 has held firm over recent sessions and is bolstered by the presence of the 0.618 Fibonacci level and a confluence of moving averages. These overlapping signals add strong validity to the idea that this is a natural higher low formation, not a breakdown.
The bullish market structure remains intact. From the key swing low at $91,500, Bitcoin has consistently carved out higher lows and higher highs which represents signs of a strong trend. As long as $106,500 continues to hold, momentum remains with the bulls. The current pause in the market appears to be a consolidation within an uptrend rather than a reversal or topping pattern.
One of the most compelling targets now lies at the $120,000 level. This target isn’t arbitrary, it’s derived from a 1.618 Fibonacci extension drawn from the $91,500 low to the $111,800 high. It also serves as a psychological milestone for traders and investors alike. As momentum rebuilds, this becomes the most logical next stop for price, provided the support zone holds.
What to expect in the coming price action
If $106,500 continues to act as support, Bitcoin is likely forming its next higher low within the trend. This would set the stage for a fresh leg higher, with $120,000 as the next major technical and psychological target. Momentum favors the bulls, and a breakout could arrive as soon as this week.