Bitcoin Eyes $120K Breakout as Key Resistance Zone Approaches

Bitcoin is once again in the spotlight as it approaches a key resistance level that could define its short-term trajectory. Currently trading near $107,400, BTC is consolidating below a descending trendline that has capped gains since its last major rally. The $110,000 to $112,000 range is emerging as a critical resistance zone. A decisive breakout above this area could invalidate the current bearish pattern and trigger a surge toward the highly anticipated $120,000 level.

The broader market sentiment remains neutral, with no clear bullish or bearish signals. However, Bitcoin has consistently formed higher lows since its March bottom at approximately $82,000—an indication of potential accumulation. Despite this, the recent rally appears to be driven more by momentum traders and short squeezes than organic buying pressure. Repeated rejections at the trendline highlight weak conviction and a lack of new capital inflow.

A breakout above $112,000 would not only breach the descending trendline but also align with previous breakout targets, adding psychological significance to the $120,000 mark. Still, caution is warranted. The Relative Strength Index (RSI) hovers around 51, leaving plenty of room for volatility in either direction.

Volume remains subdued compared to past bull runs, signaling limited spot demand. If Bitcoin fails to break above resistance, a retracement toward the 100-day moving average near $100,500 is likely. Such a move could reignite market uncertainty and dampen investor sentiment.

As Bitcoin teeters on the edge of a potential breakout or pullback, traders are closely watching key technical levels to determine the next major move. Whether BTC can reclaim bullish momentum or faces another setback will likely unfold in the coming days.