Bitcoin Holds Above $113K Support as RSI Improves and Could Rally Toward $120K

• Bitcoin holds above $113K support, eyeing $120K liquidity zone.

• Weekly RSI recovery signals improving buyer control despite prior divergence.

• Consolidation range $112K–$113.5K is key; a close above $113,500 may confirm breakout.

Bitcoin price consolidates above $113K support; track weekly RSI and $113,500 breakout for a potential rally to $120K — read now for analysis.

What is driving the current Bitcoin price near $113K?

Bitcoin price is trading around $113,500, supported by a weekly RSI recovery and technical support levels that analysts say are critical for momentum. The main drivers are the RSI improvement, resistance flips into support, and a consolidation range that precedes potential expansion.

Market analysts Ali and Kamran Asghar provided independent technical observations this week. Both highlight that the consolidation above $113,000 is a necessary base for a push toward the $120,000 liquidity zone.

How does RSI divergence affect breakout potential?

RSI divergence previously signaled waning momentum as weekly RSI made lower highs while price rose. That pattern cautions traders against blind bullishness.

Now the RSI has moved from below 40 to roughly 60 by mid-2025, showing improving sentiment. While still below classic overbought thresholds, this shift suggests buyers are regaining control and increases the odds of a sustained rally.

Why is $113,500 the key trigger level?

Analysts point to $113,500 as a psychological and technical pivot. A sustained close above this level would confirm that short-term resistance has flipped to support and could attract stop orders and liquidity that drive a move toward $120,000.

What consolidation range should traders watch?

The most relevant consolidation band is between $112,000 and $113,500. Price stability in this range indicates accumulation and reduces the probability of a sharp breakdown. Traders typically wait for a clear directional breakout with accompanying volume to validate trend continuation.

RSI Divergence and Market Sentiment

Ali noted weekly RSI has made lower highs since March last year, signaling divergence despite intermittent price spikes. Historically, such divergence precedes pauses or corrections, and traders treat it as a warning sign.

Source: Ali

Recent climbing of the RSI suggests strengthening resilience following prior corrections. Traders watching weekly momentum view this as a positive signal, though vigilance remains due to historical divergence patterns.

Critical Support and Liquidity Targets

Kamran Asghar observed that Bitcoin completed a weekly cycle retracement and found strong support near $113,000. That base is central to the bullish case toward $120,000.

Source: Kamran Asghar

Broken resistance levels now acting as support strengthen the bullish thesis. Price action showing higher lows and improved RSI increases confidence that a breakout toward the $120K liquidity zone is feasible if conditions persist.

Frequently Asked Questions

What should traders watch to confirm a Bitcoin breakout?

Watch for a decisive daily close above $113,500 with increasing volume and weekly RSI continuing higher. Confirmation includes resistance flips to support and reduced volatility within the consolidation band.

How long could consolidation last before a move occurs?

Consolidation duration varies; typical weekly cycle consolidation can last several weeks. Traders monitor volume and RSI shifts to time entry and risk management.

Key Takeaways

• Support holds: Bitcoin consolidating above $113,000 provides a base for potential upside.
• Momentum improving: Weekly RSI recovery indicates renewed buyer control but not overbought conditions.
• Trigger level: A sustained close above $113,500 could open the path to $120,000 liquidity zone.

Conclusion

Bitcoin price shows technical resilience above $113K, with improving weekly RSI and flipped resistance levels supporting a bullish outlook. Traders should watch $113,500 for confirmation and manage risk while monitoring momentum indicators. COINOTAG will continue to track developments and update readers as market conditions evolve.