Bitcoin Breaks Above $109K With Rising Volume, Analysts Eye Potential Rally Toward $118K

  • Bitcoin surges beyond $109,000 with increasing volume, signaling a potential rally toward the critical $118,000 resistance level.

  • Strong support between $108,000 and $109,000 consolidates Bitcoin’s bullish momentum, providing a solid foundation for further gains.

  • COINOTAG analyst Ali Charts notes, “A daily close above $109,000 could open the door to a rally toward $118,000,” highlighting key resistance zones.

Bitcoin breaks above $109K with rising volume, eyeing $118K resistance and maintaining strong support, indicating potential for further upside toward $120K.

Bitcoin Breaks Above $109,000, Setting Sights on $118,000 Resistance

Bitcoin’s price action has demonstrated renewed strength as it surpasses the $109,000 threshold, currently trading at approximately $109,569.36 with a 1.71% daily gain. This breakout is significant as it follows a period of consolidation marked by higher lows, which suggests sustained buying interest. Ali Charts, a respected market analyst, emphasizes that a confirmed daily close above this level could catalyze a rally toward the $118,000 resistance zone, a level that has historically presented a formidable barrier. The increase in 24-hour trading volume to $54.97 billion, an 18.08% rise, further validates the breakout, indicating robust market participation and confidence among traders.

Volume Surge and Market Metrics Support Bullish Momentum

The volume-to-market cap ratio now stands at 2.53%, reflecting heightened trading activity relative to Bitcoin’s overall valuation. This metric underscores the active engagement of market participants and supports the sustainability of the upward move. Additionally, Bitcoin’s fully diluted valuation is currently estimated at $2.3 trillion, with a market capitalization of $2.17 trillion, reinforcing the asset’s significant market presence. Analysts are closely monitoring these metrics alongside Fibonacci retracement levels, which suggest that surpassing the $118,000 resistance could pave the way for Bitcoin to test the psychological $120,000 mark.

Market Structure and Support Levels Reinforce Bullish Outlook

Bitcoin’s ability to maintain price levels above $109,000 is bolstered by a well-defined support zone between $108,000 and $109,000. This range acts as a crucial buffer, preserving the current bullish momentum and potentially serving as a launchpad for further advances. The Relative Strength Index (RSI) remains neutral, indicating that Bitcoin is not yet overbought and has room to appreciate without triggering a corrective phase. This balanced momentum is a positive signal for traders seeking confirmation of a sustained upward trend.

Expert Insights Highlight Historic Breakout Potential

Market commentator LLuciano_BTC highlights the significance of the current price action, stating, “BTC is aiming for a historic breakout,” with $120,000 identified as a key psychological target. The combination of accumulating volume, supportive price structure, and neutral RSI suggests that Bitcoin is well-positioned to continue its ascent. The resilience demonstrated over the past 24 hours underscores the strength of the current setup, encouraging traders to watch for a sustained daily close above $109,000 as a signal for extended gains.

Conclusion

Bitcoin’s recent breakout above $109,000, supported by rising volume and a firm support zone, marks a pivotal moment in its price trajectory. With key resistance levels at $118,000 and $120,000 in focus, the market exhibits a constructive short-term outlook. The neutral RSI and active trading volumes further reinforce the potential for continued upside. Investors and traders should monitor daily closes and volume trends closely, as these will be critical indicators for the sustainability of this bullish momentum.

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