The $118K-$120K level has historically served as strong support, with buy orders visible on major exchanges like Binance. Analysts note that if buyers intervene, Bitcoin may regain momentum and target higher levels in the coming weeks.
Constant technical support
Cryptocurrency analyst Ted (@TedPillows) pointed to the $118K-$120K area as a key support area. According to him, strong buy orders on Binance are concentrated around this range. “Bitcoin could head towards this level, but a rally is expected if buyers intervene,” Ted noted.
Bitcoin is looking to bounce as it retests the $118K-$120K support zone, with strong buy orders on Binance signaling a potential rally. Source: @TedPillows via X
Price action supported this view. Bitcoin briefly fell to around $120,104 before bouncing back to around $121,000. This move confirms the classic support retest pattern, where the previous resistance level turns into support.
Lark Davis (@TheCryptoLark) also commented on this, noting that Bitcoin “fooled the market twice at $120,000,” trapping hack chasers before pulling back. He now adds that the $120,000 floor has held, keeping the momentum on the upside.
Fibonacci extensions indicate $130,000
Analysts are now eyeing $130,000 as the next potential target for Bitcoin. This level is derived from the 1.618 Fibonacci extension, which is a technical tool based on the golden ratio typically used to display price movements in cryptocurrency markets.
Bitcoin flips $120,000 from resistance to support after false breakouts, consolidates above level with $130,000 Fibonacci target in focus. Source: @TheCryptoLark via X
Fibonacci extensions have become a popular reference among traders, as studies have shown that they can improve profitability in algorithmic strategies. With BTC being closely watched at this critical juncture, many investors are anticipating a potential rally towards $130,000 if the bullish momentum continues.
Bullish forecasts from experts
Fundstrat analyst Tom Lee amplified optimism about Bitcoin in the fourth quarter. He expects a “massive move” in the next three months, citing global central bank easing and historical seasonal trends. Lee points out that Bitcoin could reach $200,000-$250,000 by the end of the year, which would represent an increase of approximately 67 to 108% from current levels.
Tom Lee expects a significant upward movement for Bitcoin over the next three months, indicating a potential significant upside for Bitcoin. Source: @kyle_chasse via X
These forecasts are consistent with historical patterns. Coinglass data shows that Bitcoin typically sees strong performance in the fourth quarter, although newer cryptocurrency markets can be volatile and unpredictable.
Key considerations for investors
While technical indicators and a bullish outlook point to a potential recovery, macroeconomic factors remain key to Bitcoin’s short-term direction. Trade tensions, regulatory updates, and overall market sentiment can impact Bitcoin prices quickly, creating volatility even when fundamentals appear strong.
Investors and traders must stay alert and balance technical insights with broader economic awareness. Monitoring these factors along with Bitcoin’s price action can help make more informed decisions, especially when Bitcoin navigates through important support and resistance levels.
Final thoughts
Bitcoin’s decline to the $118,000-$120,000 support zone appears to have provided a strong base for a bounce. Technical retests and a bullish outlook suggest that Bitcoin could rally, potentially targeting $130,000 in the near term.
Bitcoin (BTC) was trading at around $118,163, down 1.86% over the past 24 hours at press time. Source: Bitcoin price via Brave New Coin
However, the cryptocurrency market remains dynamic. Investors should approach positions with caution and monitor emerging macroeconomic developments.