Bitcoin Targets $120K Amid Channel Breakout and Momentum Surge

Channel Breakout Sparks $120K Bitcoin Target

The leading digital asset, Bitcoin (BTC), is on a resurgent ride following an abrupt correction in early October, which also indicates a new round of bullish sentiment. Recent technical trends across various periods indicate increased demand, narrowed liquidity, and heightened volatility. 

Notably, all these factors are indicators of a possible continuation rally. The next important target is now considered by analysts to be the $120K level, with momentum indicators revealing an increased buyer conviction.

Crypto Aman Noted BTC’s Bullish Channel Break

Analyst Crypto Aman pointed out a breakout above the parallel rising channel, which further augmented the likelihood of a long-term rally. The action caused buyers to move through the high boundary in the range around $115,800, confirming a short-term bullish formation that had been formed during the session. Every time the crypto bounced from the lower trendline, it formed a higher bottom, strengthening accumulation and restoring driving force.

BTCUSD 5. CHART | SOURCE: X

This push is, however, under observation for its sustainability. To keep the breakout, the price will have to consolidate at higher levels above the $115,800-$115,900 zone with subsequent volume backing. An effective retest in this zone would affirm a new intra-day trend, which would lead towards resistance between $116,400 and $116,800. Going backward on the channel, on the other hand, would indicate exhaustion, suggesting that this may have been a brief liquidity sweep.

According to the analyst, the trend in Bitcoin is still biased towards buyers with constantly higher lows, pointing to strength in buyer activity. Traders are now waiting to see follow-through momentum to ensure that the short-term sentiment is consistent with the overall recovery.

Bitcoin Regains Mid-Band

Another Bitcoin daily chart provides a clear view of the ongoing recovery. The asset has regained above $115,000, and this is the first time that it has closed above the middle Bollinger Band in about three weeks. This is an indication of the transition from bearish control to a bullish bias. Also, the upper band is close to $120,900, which is one of the major resistance zones where sellers had prior control, with support at approximately $103,300.

BTCUSD 1D CHART | SOURCE: TradingView

Importantly, the Bollinger Bands are beginning to expand following weeks of compression, suggesting that volatility is back and traders could experience greater price movement in the future. A prolonged stand above the 20-day simple moving average might permit penetration into the $120,000-$122,000 range. Otherwise, failure to retain the $114,000 level could provoke a re-test of the mid-band near $112,000 before new bids are presented.

Momentum Hints at Bullish Reversal

Additionally, the MACD indicator supports this bullish inclination. It has broken through the signal line, shifting momentum in the positive direction for the first time since early October. Moreover, the expanding histogram indicates that the correction phase may be nearing completion, which suggests improved buying strength and reduced selling pressure.

Furthermore, Bitcoin could gain traction toward the higher resistance zone if momentum continues, as traders react to the increasing volume and optimistic mood. Nevertheless, analysts warn that taking profits around the $120K handle may slow the progress in the short run, before another definite trend is formed.