- Bitcoin is testing critical price zones, with $85K acting as a possible reversal point for bullish movement.
- Analysts predict a rally to $120K if Bitcoin breaks above the resistance range between $97K and $98K.
- Stable trading volumes show strong interest as Bitcoin holds near key levels despite recent price retracement.
Bitcoin has dropped to $92,025, marking a 1.8% decline from its recent peak of $107,000. Experts are closely watching the coin’s performance as it approaches thresholds that could determine its next major move.
Source: CryptoPatel
Maintenance areas have been identified at $90,000, $85,000, and $80,354, aligning with retracement levels. The $85,063 level, which corresponds to the 50% FIB ratio, has become particularly important as a theoretical turning point for BTC price action.
Additionally, Bitcoin is still trading within an ascending channel, where the lower boundary serves as a backing level. If prices fall below this channel, there is potential for a deeper retracement toward $74,096, which corresponds to the 78.6% Fibonacci level.
Is Bitcoin Ready for a $120K Rally?
Some traders believe that Bitcoin could rally to $120,000 if it breaks through opposition at $97,000 to $98,000. This key zone has been challenging for Bitcoin to overcome, but a decisive breakout could push the currency toward its next upward wave.
The Elliott Wave theory suggests that Bitcoin is in its fourth wave of a longer-term downtrend . If the fifth wave is confirmed, prices could exceed $120,000 in the coming months. Bitcoin’s past trends often show momentum once resistance zones like the $97,000 level are breached.
However, if the coin fails to break above $98,000, it may continue to consolidate near its current levels. Traders are carefully monitoring these price zones, as they are likely to signal whether the token bullish trend will resume.
Broader Trends Affecting Bitcoin’s Movement
Global market trends and economic conditions are also playing a role in Bitcoin’s recent price movements. Factors such as inflation concerns and changing interest rate policies are influencing the larger digital asset economy, creating some uncertainty.
Trading volumes remain steady, which indicates sustained interest from buyers even as prices retrace. This stability provides some confidence that it token could soon recover from its current lows.
Analysts caution clients to watch for sudden price movements while keeping an eye on critical support and resistance levels. With $90,000 and $85,000 acting as major pivots, its next moves will likely define its place in the economy heading into early 2025.
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