Bitcoin is trading around $120,000, increasing slightly over the last day and showing a 10% rise over the past week. The current trading volume over 24 hours is approximately $64.2 billion. Traders are currently observing the $120,000 threshold to determine if it will serve as new support, following a daily closing above this critical level.

August Similarities

Recently, analysts have drawn parallels between this breakout and a similar trend observed in mid-August, which occurred when a daily close above $120,000 initiated a bounce towards the record high of $124,000. The price action at this stage could indicate the short-term momentum direction.

$120K Breakdown Reflects Previous Trends

Analyst Rekt Capital noted that Bitcoin successfully closed above $120,000. In August, this development led to a supportive retest at the same level and a subsequent move towards $124,500. The analysis marked both occurrences in green circles on the chart.

“Bitcoin has achieved a daily close above approximately $120K. An equivalent close in mid-August (indicated by the green circle) preceded a successful retest of $120K as new support, which eventually resulted in an upward movement to $123400 (indicated by the red arrow). - Rekt Capital

It appears the current trading pattern is mirroring that earlier setup. If support holds, valuations may reach $123,350 and potentially beyond. However, if it lacks stability, the next support levels are expected around $117,288 and $114,249. In another report, Rekt Capital also highlighted that Bitcoin is contending with a 2.5-month downtrend line close to $119,000.

Moreover, over the weekly timeframe, the analyst indicated a potential for Bitcoin to enter a “Price Discovery Uptrend 3.” This long-term chart illustrates a pattern starting in early 2023, characterized by price breakouts followed by retests that maintain upward trajectories.

A Look Ahead

As we draw towards the end of this year, Crypto Seth has provided insights on long-term trends, predicting a 70% rise towards approximately $203,530 by 2025’s conclusion, reflective of past quarterly growth percentages.

Potential Slowing Momentum

Conversely, Ted Pillows observed an overbought signal in Bitcoin’s 4-hour Relative Strength Index (RSI), currently resting at 80.18. This leads to expectations for a possible correction or lateral movement following recent bullish action.

The overall scenario conveys that Bitcoin’s trajectory is intact, with no indicators suggesting an imminent market peak.