Bitcoin Bulls Target $120K, Can They Break the $106K Barrier?

• Bitcoin eyes $120K but must break past $106K resistance for a strong rally. Bulls are holding firm with higher lows and solid momentum.
• The ascending triangle signals bullish strength, but Bitcoin needs sustained momentum above $106K to confirm a breakout.
• A breakout could spark rapid gains, yet failure to hold support may lead to corrections. Traders should watch key levels closely.

Bitcoin is trading near $97,000 while forming an ascending triangle. The price action suggests consolidation within an upward trendline and horizontal resistance. Analysts indicate that a breakout past $106,000 could initiate a significant rally toward $120,000.

Key Resistance Level at $106K

Captain Faibik, a technical analyst, notes that Bitcoin is currently testing its crucial resistance at $106,000. Besides, the price has been rejected multiple times at this level, reinforcing its importance.

Moreover, Bitcoin continues to establish higher lows, indicating sustained bullish momentum. If buyers break this resistance, Bitcoin could enter a price discovery phase. Consequently, this may push the price toward the projected $120,000 target.

Market Structure and Bullish Indicators

Bitcoin’s market structure remains strong, supported by the ascending trendline. Buyers have defended this trendline multiple times, preventing any downside movement. Additionally, recent price action shows rejection wicks, reflecting strong buying pressure.

However, Bitcoin needs sustained momentum above $106,000 to confirm the breakout. A successful breakout could trigger bullish momentum, pushing prices higher. Significantly, any failure to hold the above support may lead to potential corrections.

Price Projection and Market Sentiment

The chart illustrates a possible scenario where Bitcoin retests $106,000 before continuing its rally. Moreover, historical trends indicate similar price behavior in bullish cycles. Hence, a strong breakout above resistance could lead to rapid gains.

Furthermore, the color gradient reflects bullish sentiment. It transitions from blue at lower price levels to yellow near the upper target. This visual representation aligns with Bitcoin’s previous exponential price surges.

Additionally, Captain Faibik emphasizes the importance of market structure in predicting future price movements. The outlined projection suggests minor fluctuations before Bitcoin confirms the breakout. Consequently, traders should monitor Bitcoin’s interaction with key support and resistance levels.

Final Outlook

Bitcoin remains in a bullish phase as long as it holds above its ascending trendline. Besides, the $106,000 resistance level remains critical for confirming further upward momentum. If buyers succeed in breaking this level, Bitcoin could reach $120,000 in the coming weeks. However, a breakdown below trendline support may introduce downside risks.