Bitcoin Price Tests $120K Resistance: Will It Break or Retrace?

Bitcoin Price Approaching $120K Resistance: What Comes Next?

Bitcoin price is currently testing a critical resistance zone around $120K, a level that could determine the cryptocurrency’s short-term direction. According to crypto analysts, a close above this threshold is crucial for Crypto King to maintain its bullish momentum. A successful breakout could lead to further gains, while a failure to hold above $120K may result in a retracement.

Bitcoin Price Struggles Near $120K, Analyst Predicts Potential Retracement

The price of Crypto King had been moving in a narrowing triangle formation, and the upper limit was close to the $120K mark. Analysts are keeping a close eye on this level because a breakthrough would be the indicator of the second leg of an upward trend.

Nonetheless, when Bitcoin fails to overcome this resistance, a pullback will probably occur. Experts observe that some of the critical levels of support, such as those observed in the lower levels of Fibonacci retracement, will be critical in establishing how far the price can drop.

Bitcoin Price Surges After Government Shutdown

The recent U.S. government shutdown has been accompanied by an increase in BTC price increasing in relation to previous trends. This time around, there was resilience in the value of Bitcoin, unlike the significant declines of 2018 and 2013. The trends in the past indicate that Bitcoins experience considerable growth some months following such occurrences.

In past shutdowns, it had shot up significantly following the 2013 and 2018 government shutdowns. This trend seems to be reenacting itself in the year 2025, and this provides hope to traders and investors. The market response to the cryptocurrency appears to be positive, identical to the successful after-shutdown trends in previous years.

A crypto analyst recently published an analysis of the performance of Bitcoin, emphasizing that it has been on an upward trend. Based on the analysis, the uptrend structure of Bitcoin is stable, and it is still on a bullish trend, irrespective of the occasional retreats.

The chart displays the price of BTC traveling in a chain of upward steps, and repeating corrections (marked as pullbacks) intermittently. Such pullbacks do not interfere with the bigger picture bullish momentum. The cryptocurrency gets back and reaches higher levels each time.

The trend is underpinned by a long-term outlook, with the analysis that the uptrend will continue deep into 2026. Nevertheless, the trend of BTC is obvious: a long-term upward trend.

How High Can BTC Price Go This Month?

The BTC price traded at $118,719 on October 2, 2025, with a slight increase of 4% over the last 24 hours. BTC has been very volatile in recent days, risking the maximum resistance at $120,000. The RSI is at 79.24, thus showing that there is an overbought condition, so the price might experience a pullback in the near future.

Source: BTC/USD 4h chart: Tradingview

There is also a positive momentum of the MACD (Moving Average Convergence Divergence) with the histogram of 396.08 and the MACD line of 1,827.21 showing further bullish pressure. Traders will be watching for potential resistance at $120,000 to see if it can be breached or if a reversal could occur in the near term.