Bitcoin’s recent price action is fuelling fresh optimism among traders and investors as it eyes a new milestone of $120,000. Despite a pullback from its recent local high of $111,800, the broader technical structure suggests that the uptrend remains firmly in place. The current retracement appears orderly and healthy, aligning with key Fibonacci levels and long-term moving averages, indicating that the bulls are far from exhausted.
Strong Support Holding at $106,500
The most significant technical development in recent sessions is the firm support forming around the $106,500 zone. This area has proven resilient during the latest dip, coinciding with the 0.618 Fibonacci retracement level — a key ratio often associated with bullish continuation setups.
Adding further weight to this support level is the convergence of two major moving averages, acting as a technical floor. This confluence provides strong backing for the case that the current pullback is merely a higher low within a broader bullish structure, not a precursor to a breakdown. The market’s ability to respect this zone will be pivotal in determining the strength of the next upward move.
Market Structure: Higher Highs and Higher Lows
The bullish structure that began with the $91,500 swing low remains intact. Since then, Bitcoin has been printing a consistent sequence of higher highs and higher lows — a textbook example of an uptrend. This pattern reflects growing confidence and sustained momentum among market participants.
BTCUSDT (4H) Chart, Source: TradingView
Importantly, even after touching $111,800, the pullback has not violated any key structural levels. Instead, it has reaffirmed the bullish bias by finding support at technically significant zones. As long as Bitcoin remains above $106,500, the bias remains upward, and any dips into this region are likely to be viewed as buying opportunities.
Fibonacci Extension Signals $120,000 Target
Using Fibonacci extension tools, analysts have identified $120,000 as the next major target. This level aligns with the 1.618 extension of the most recent bullish impulse, giving it strong technical validity as a potential resistance point in the near future.
Fibonacci extensions are widely used in trending markets to project where the next wave of buying pressure could take price action. In this case, the projected move to $120,000 suggests that Bitcoin still has significant upside potential, provided current support levels continue to hold.
Consolidation or Reversal? All Signs Point Up
The market is currently in a consolidation phase, often mistaken for reversal in volatile assets like Bitcoin. However, the current price behaviour indicates a classic pause within an ongoing uptrend. Volume remains steady, support levels are respected, and there’s no evidence of distribution or topping patterns.
What we’re witnessing appears to be a period of healthy consolidation, possibly forming the base for the next leg higher. With macro conditions relatively stable and institutional interest still growing, the path of least resistance appears to remain to the upside.
