Bitcoin (BTC) continues to trade within a strong bullish structure, with price action suggesting the potential for a new impulsive leg higher toward $120,000. Despite a recent pullback from its local high of $111,800, the retracement appears to be technically healthy, aligning with key support zones and setting the stage for renewed upward momentum.
Bullish Structure Intact as BTC Retests Key Support
After rallying to a recent peak of $111,800, Bitcoin has pulled back to the $106,500 support zone a level that coincides with two major moving averages and the 0.618 Fibonacci retracement of the recent upswing from $91,500. This level has held firm, reinforcing the idea that the market is consolidating within a broader uptrend rather than reversing.
The market structure remains bullish, with Bitcoin forming a consistent sequence of higher highs and higher lows from the key swing low at $91,500. This pattern, combined with the resilience of support at $106,500, suggests that the pullback is likely a higher low rather than a sign of weakness.
Fibonacci Analysis Points to $120K Target
One of the most compelling reasons for continued bullish sentiment lies in the 1.618 Fibonacci extension, which projects a price target of $120,000. This target was derived from the move between the $91,500 swing low and the $111,800 high, providing both a technically sound and psychologically significant milestone for traders and investors.
With momentum indicators stabilizing and no clear bearish divergence on the charts, the $120K level becomes the next logical resistance zone, assuming current support continues to hold.
What to Expect Next
If $106,500 holds as support, Bitcoin is likely forming a textbook higher low, which could lead to an impulsive breakout in the coming sessions. A push above $111,800 would confirm the continuation of the uptrend and open the path to $120,000.
Key Levels to Watch:
- Support: $106,500 (confluence of moving averages and 0.618 Fib retracement)
- Resistance: $111,800 (recent swing high)
- Target: $120,000 (Fibonacci extension and psychological level)
With bullish momentum intact and macro tailwinds continuing to support institutional interest in Bitcoin, the setup appears favorable for further upside potentially this week.
Bitcoin’s recent retracement has reinforced not weakened the prevailing uptrend. With technical indicators aligned and support zones holding, BTC is gearing up for a possible breakout to $120,000, a move that would solidify its position within a long-term bullish trend. As always, traders should watch for confirmation through volume and price action, but for now, the bulls remain in control.
