- Bitcoin reclaimed the $109K level and now trades above key support with a target near $111K in view.
- The Fibonacci 0.618 zone is back in play and indicators show strength as buyers gain control of price action.
- If Bitcoin clears $111K soon the next resistance is found at $120K with thin zones between both levels.
Bitcoin has reclaimed the 0.618 Fibonacci retracement level at $109,814 and now aims for a breakout toward $111,835 and possibly $120,000. The price action on the 4-hour chart from Bitstamp shows BTC trading around $109,711 with a 1.05% gain, holding firm above previous resistance zones. This level, considered critical in Elliott Wave theory, may mark the start of a larger impulse wave.
The volume profile on the right-hand side shows thick liquidity between $108,000 and $106,500, now acting as a major support block. Indicators also point to strengthening bullish divergence, with RSI curving upward and the stochastic oscillator pushing higher. Traders and analysts are closely watching the $111,835 and $120,000 zones for a potential high-volume breakout.
With BTC maintaining higher lows and reclaiming key zones, the next leg of price movement could redefine short-term market structure.
Liquidity Cluster Holds at $108K While $111K Target Gains Interest
Bitcoin’s price has formed a well-defined zone of high liquidity between $108,000 and $106,000, visible on the volume profile histogram. This level, which previously acted as resistance, now serves as a significant accumulation area for bullish continuation. If price remains above this block, upward momentum could intensify quickly.
The 0.618 Fibonacci level, located near $109,814, was tested and reclaimed, signaling strength in the current structure. Elliott Wave counts indicate a new wave three advance might be underway, projecting a move above $111,835. Fibonacci extensions show that $120,000 is a potential target if the pattern completes.
Order book imbalances and thin resistance beyond $111,000 suggest short sellers may face a liquidation cascade. This would add fuel to an already growing upside pressure, making the next 48 hours pivotal for short-term direction.
Momentum Indicators Flash Bullish Reversal After Support Retest
The Relative Strength Index (RSI) has started curving upward on lower timeframes, showing strength after a brief dip below neutral. Similarly, the stochastic oscillator on the 4-hour chart confirms a fresh bullish crossover, typically viewed as a buy signal during trend continuation.
Volume analysis shows rising demand bars on breakout attempts, with decreasing sell-side pressure near the previous consolidation zones. Traders see these indicators as confirmation that the recent pullback has reset momentum without breaking bullish market structure.
Bollinger Bands are widening slightly, allowing for higher price volatility, while the 50 EMA is curling upward below the price action. Combined, these signals suggest market conditions now favor another leg up, especially if the $111K zone is cleared.
Can Bitcoin Reach $120K This Month as Traders Load into Breakout Zones?
With liquidity stacked below and upward pressure building, Bitcoin’s structure appears primed for a clean run to $120,000. The major question now is whether this move can sustain momentum or if it will trigger a liquidity trap at resistance.
Chart levels and volume metrics suggest that $111K is the immediate target to watch. If that breaks, $120K may follow quickly under strong buying conditions.
