Can Bitcoin Reach $125K After Testing and Breaking the 20-Day SMA?

Summary:
Bitcoin is currently testing crucial resistance levels after breaking the 20-day Simple Moving Average (SMA), raising expectations of upward momentum. Currently priced at $91,747, analysts are observing these key levels carefully as Bitcoin seems poised for potentially significant movements.

Key Takeaways

Bitcoin is trading at $91,747, having gained 2.7% in the last 24 hours.
The cryptocurrency's daily price range has been between $87,887.18 and $91,673.07.
Over the past week, Bitcoin has risen by 6.4%.
A resistance level is set at $92.4K, which could be a pivotal point for BTC price advancement.
Bitcoin is currently testing the upper Bollinger Band, suggesting a potential bullish trend.
Analysts predict Bitcoin could reach $125,000 if it breaks through current resistance levels.

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Bitcoin Price Analysis

Bitcoin's recent price action against the U.S. Dollar shows notable movement on the 4-hour chart. The cryptocurrency is situated within a range, with support resting at $88,282 and resistance at $92,244.

As Bitcoin approaches the upper Bollinger Band, this indicates further resistance could be at hand if a bullish trend continues. Success in breaking this level may enable Bitcoin to expand its gains, possibly aiming for the $93,000 mark or above.

Bitcoin 4-Hour Chart

Moreover, the Relative Strength Index (RSI) is showing a value of 57.49, suggesting Bitcoin is not yet overbought, leaving room for potential upward momentum—especially if the price manages to overcome the resistance.

However, if Bitcoin is unable to surpass $92,244, the price might consolidate or reverse its course. Immediate support is at $89,000, and any drop below this threshold could prompt a test of the next support level around $88,282. Observations of these levels are critical as they will inform whether Bitcoin can maintain its upward trajectory or potentially experience a pullback, particularly after confirming the 20-day moving average.

Can Bitcoin Reach $125K?

In a recent X post featuring another 4-hour Bitcoin chart, analyst Captain Faibik maintains that Bitcoin is in a broadening wedge pattern. This formation suggests a potential upwards breakout is on the horizon later this week. Bitcoin's price is currently oscillating within converging trend lines, with the lower boundary acting as support and the upper boundary as resistance.

Bitcoin Price Analysis

Typically, a broadening wedge indicates heightened volatility, and a breakout above the upper trend line could result in a significant price shift. The analyst projects that if Bitcoin successfully breaches the upper boundary and stands above the $94,000 level, it could be on the path to a substantial rally towards the $125,000 target.

Disclaimer: This article is solely for informational purposes and should not be taken as financial advice. The opinions expressed herein reflect those of the author and do not necessarily represent the views of The Crypto Basic. Conduct thorough research before making any investment choices. The Crypto Basic holds no liability for financial losses incurred.