Bitcoin Poised For $120K Mark as Key Indicators Flash Bullish Signals

• On-chain data suggests a strong Bitcoin rebound as trader loss margins hit historically significant levels.
• Holding above the MA50 support could drive BTC toward $120K, while a breakdown may lead to a $54K–$55K retest.
• The $97K resistance level is key, with a breakout potentially paving the way for new all-time highs.

Bitcoin (BTC) is back in the spotlight, surging after a period of market turbulence. With key technical indicators aligning, the flagship cryptocurrency could be on the verge of a major breakout, potentially pushing toward the highly anticipated $120K price target.

Bitcoin Reversal Signals Strengthen

On-chain data is flashing a strong buy signal for Bitcoin. Market expert Ali Martinez pointed out that BTC has historically rebounded when trader loss margins reach -12%. Currently, this figure stands at -15.4%, indicating that BTC may be in a prime position for a reversal.

Bitcoin Poised For $120K Mark as Key Indicators Flash Bullish Signals 5

This pattern has played out multiple times in the past, with Bitcoin experiencing strong rebounds whenever traders were deep in unrealized losses. If history repeats itself, this metric alone could suggest a significant price recovery.

Meanwhile, Captain Faibik highlighted that BTC is still moving within a rising wedge pattern on the weekly timeframe, a formation often associated with both breakouts and breakdowns depending on market conditions.

Bitcoin Price Targets: $120K or a Retest of $55K?

If Bitcoin successfully holds above MA50 support, bulls could regain momentum, pushing BTC toward $120K in the coming weeks. However, a breakdown below MA50 and a failure of the rising wedge pattern could send BTC back to retest the $54K–$55K support zone.

Bitcoin Poised For $120K Mark as Key Indicators Flash Bullish Signals 6

Adding to the bullish narrative, Martinez emphasized the importance of the $97K resistance level, where over 2.27 million investors accumulated 1.64 million BTC. A decisive breakout above this supply wall could open the door for new all-time highs (ATHs).

Bitcoin Poised For $120K Mark as Key Indicators Flash Bullish Signals 7

Will Bitcoin Breakout to New Highs?

With bullish technical indicators and strong investor demand, BTC’s probability of higher prices remains strong. If BTC clears the $97K resistance, the road to $120K and beyond could be in play.

As BTC navigates these key levels, traders and investors are closely watching whether the market leader will retest support or rally to new price discoveries. The next few weeks will be critical in determining Bitcoin’s trajectory.

Related Reading | Is XRP Ready to Skyrocket? Key Levels to Watch for Major Gains