- Bitcoin broke out of a downtrend channel and now eyes $120K as traders gain confidence from stronger momentum and solid support levels.
- Despite an 11% correction, 91% of Bitcoin holders remain in profit, showing this dip is more a reset than a deep bear phase.
- Analysts highlight support near $108K and resistance at $115K, suggesting Bitcoin is consolidating before a potential leg higher.
Bitcoin is showing signs of breaking free from its recent decline. The cryptocurrency traded at $111,519.41 against Tether, gaining $712.70 or 0.64% in the latest session. Analysts note that Bitcoin has broken out of a descending channel that began in mid-August, when prices peaked above $125,000.
The correction pulled Bitcoin down nearly 11% from those highs, with multiple rejections at resistance levels shaping the channel.
Crypto analyst Scient remarked, “$BTC broke out from the downtrend channel hence took some shitcoin longs few hours ago. Now flip red box and $120k in play.” His statement underlined growing confidence that Bitcoin could rally toward the $120,000 level if current momentum holds.
Source: Scient
Correction Shows Limited Pain for Holders
Despite the correction, most holders remain in profit. Analyst Cas Abbé highlighted, “Only 9% of Bitcoin supply is in loss. Let that sink in.” He compared the current cycle with past lows, noting that during 2015 and 2018 bottoms, nearly 50% of supply was underwater.
Even in the latest correction, losses remain shallow compared to historic drawdowns, reinforcing that this phase looks more like a healthy reset than a bearish reversal.
Source: Cas Abbe
Technical analysis also reveals steady support in the $108,000–$109,000 range. Every bounce from that area showed a high level of buyer interest. However, resistance is still present between $114,000 and $115,000, where the upper channel trendline has frequently stopped gains.
Short-Term Outlook and Key Levels
The four-hour chart reveals detailed price action. Each candlestick highlights sharp swings between the channel boundaries. Moreover, volume trends confirm active participation during both declines and recovery attempts. This market behavior strengthens the idea of a consolidation phase rather than prolonged weakness.
As such, Bitcoin lately is making an effort to overcome barriers. $120,000 to $125,000 is the estimated price if buyers maintain their enthusiasm. It is crucial to keep an eye on support levels around $108,000 in the upcoming sessions since they act as a buffer against negative threats.
Besides technicals, the broader sentiment remains bullish. Abbé emphasized that the low supply in loss shows resilience in the market. Hence, investors may see this correction as an opportunity rather than a warning. Bitcoin’s breakout could now signal the next leg higher, with $120,000 firmly in play.
