Over the weekend, the value of the leading cryptocurrency rose significantly. While the BTC/USD rate closed around $116.6k on Friday, today Bitcoin is trading above $120k and is nearing a potential new all-time high.
Since its August low, the price has increased by approximately 9%.
Why Bitcoin is Rising Today
From a fundamental perspective, this growth may be driven by:
→ Expectations ahead of tomorrow’s key US inflation data release (CPI report due at 15:30 GMT+3);
→ Donald Trump’s decision to allow pension and other funds to include cryptocurrencies and other alternative assets in their portfolios. Analysts believe the presidential decree could trigger a fresh wave of capital inflows into Bitcoin.
BTC/USD Technical Analysis
Last week, when analysing Bitcoin’s price, we extended the long-term blue ascending channel and:
→ Marked an intermediate descending channel with red lines;
→ Highlighted the importance of the $116k level.
The latest data shows that:
→ The $116k level has shifted from resistance to support (as indicated by the arrow);
→ The descending channel acted as a Bull Flag pattern — a temporary correction within the prevailing upward trend.
What’s Next for BTC/USD?
It is possible that the bullish momentum will be sufficient for the price to attempt surpassing its previous all-time high this week. However, such a move could push the market into an even more overbought state (the RSI indicator is already above 70).
So, BTC/USD could aim for the upper boundary of the blue channel, while forming short-term corrections along the way — for example, retesting the psychological $120k mark (recently breached by a strong bullish candle and potentially serving as important support going forward).
It is worth noting that analysts at the on-chain options research platform Dervie expect Bitcoin to reach $150,000 by year-end.
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