Bitcoin (BTC) recently tested a critical support zone, dipping from $122,000 to the $118,000–$120,000 range, sparking renewed attention from traders and analysts anticipating a potential rebound.
The $118K–$120K level has historically acted as a strong support, with visible buy orders on major exchanges like Binance. Analysts note that if buyers step in, BTC could regain momentum and target higher levels in the coming weeks.
Technical Support Holds Firm
Crypto analyst Ted (@TedPillows) flagged the $118K–$120K zone as a major support area. According to him, strong buy orders on Binance are concentrated around this range. “Bitcoin could dump towards this level,” Ted noted, “but a rally is expected if buyers step in.”
Bitcoin eyes a bounce as it retests the $118K–$120K support zone, with strong buy orders on Binance hinting at a potential rally. Source: @TedPillows via X
Price action has supported this view. BTC briefly dipped to about $120,104 before bouncing back to near $121,000. This movement confirms the classic support retest pattern, where a previous resistance level flips to support.
Lark Davis (@TheCryptoLark) also weighed in, pointing out that Bitcoin had “faked out the market twice at $120K,” trapping breakout chasers before reversing. Now, he adds, the $120K floor has held, keeping momentum on the bullish side.
Fibonacci Extensions Point to $130K
Analysts are now eyeing $130,000 as Bitcoin’s next potential target. This level is derived from the 1.618 Fibonacci extension, a technical tool based on the golden ratio commonly used to project price movements in crypto markets.
Bitcoin flips $120K from resistance to support after false breakouts, consolidating above the level with eyes on the $130K Fibonacci target. Source: @TheCryptoLark via X
Fibonacci extensions have become a popular reference among traders, as studies show they can improve profitability in algorithmic strategies. With BTC closely monitored at this critical stage, many investors are anticipating a possible run-up toward $130K if bullish momentum continues.
Bullish Forecasts from Experts
Fundstrat analyst Tom Lee has amplified optimism for Bitcoin in Q4. He predicts a “monster move” in the next three months, citing global central bank easing and historical seasonal trends. Lee suggests BTC could hit $200,000–$250,000 by year-end, which would represent a gain of roughly 67–108% from current levels.
Tom Lee predicts a mega bullish move for Bitcoin over the next three months, signaling a potential monster rally for BTC. Source: @kyle_chasse via X
These forecasts align with historical patterns. Coinglass data shows that Bitcoin typically sees strong Q4 performance, although younger crypto markets can be volatile and unpredictable.
Key Considerations for Investors
While technical indicators and bullish forecasts suggest a potential rebound, macroeconomic factors remain key to Bitcoin’s short-term direction. Trade tensions, regulatory updates, and overall market sentiment can quickly influence Bitcoin prices, creating volatility even when fundamentals appear strong.
Investors and traders should stay alert and balance technical insights with broader economic awareness. Monitoring these factors alongside Bitcoin’s price action can help in making more informed decisions, especially as BTC navigates critical support and resistance levels.
Final Thoughts
Bitcoin’s dip to the $118K–$120K support zone appears to have provided a strong base for a rebound. Technical retests and bullish forecasts suggest BTC could rally, potentially targeting $130K in the near term.
Bitcoin (BTC) was trading at around $118,163, down 1.86% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin
However, the crypto market remains dynamic. Investors should approach positions with caution and keep an eye on emerging macroeconomic developments.