- Bitcoin trades above $118K in a compressed range, indicating possible buildup for a vertical breakout toward $125K.
- Technical support at $112K holds strong, suggesting any dip could offer a bullish reset before a fresh rally.
- Sustained consolidation above $110K signals accumulation phase, often preceding breakout moves to new highs.
Bitcoin (BTC) has moved to the area of 118,904 and is in a narrowed range above significant support. The asset is currently showing a bull trend, and its price and movement are implying that it might soon make a breakout into new highs within the following weeks.
Bitcoin Creates Narrow Range Following Breakout Through $ 110K
In July, the price of Bitcoin conquered the resistance of more than 110,000 dollars, which indicated an important twist in the market situation. This is because it has since been trading within a narrow, compressed channel, and such set ups are usually attributed to accumulation periods preceding big upward moves.
This is taking place after a good impulse rally and indicates that the market is resting but not retreating. Technical analysis shows no breakdown in structure, with buyers maintaining price above previous resistance. Such formations often lead to breakout continuation rather than failure.
Trendline Support Reinforces Bullish Momentum Outlook
A visible ascending trendline from April continues to provide structure and confidence to the ongoing bullish narrative. The trendline sits near $112,000, which may act as a potential retest zone should BTC briefly dip.
The recent tweet from @IncomeSharks suggested this trendline test would be a healthy reset. A move down to $112,000 would shake out weak hands but keep the broader bullish momentum intact. It would offer a strategic reentry point for buyers before another rally attempt.
Upside Target Set at $125K With Bullish Breakout Expected
With the structure intact and the trendline holding firm, traders are watching for a breakout from the current range. A vertical explosion from the channel could push Bitcoin to $125,000, as forecasted in recent bullish outlooks.
The following rally would probably be driven by what is left in the current channel in terms of accumulation and contraction. Should this break out it would take BTC to a new all-time high, which would confirm long-term bullish positions.
