Bitcoin Rebounds Strong: $120K Breakout Incoming?

Key Insights:

• Bitcoin recovers above $115K with momentum returning, supported by RSI and MACD bullish signals.
• Chart shows structure break; support at $114K may fuel a move toward $121K if buyers hold.
• Whale opens $161M BTC short after last win; timing raises questions amid renewed market volatility.

Bitcoin is showing signs of recovery after last week’s sharp drop. The price was now around $114,765, posting a small daily gain after losing over 8% across the last seven days. Traders are focused on the $115,000–$120,000 zone to see if momentum can build further.

Price Holds Key Support Levels

Bitcoin has moved back above its short-term moving averages, including the 5, 10, and 20-hour lines. This shift suggests renewed short-term strength. The price is now holding just above $115,000, a key support level tested during the recent decline.

Resistance is expected near $120,000, where previous consolidation occurred before the recent drop. If price stays above support and buying continues, a move toward this upper level is possible.

Momentum Indicators Confirm Rebound

The 1-hour RSI is close to 70, showing stronger buying activity but also approaching overbought levels. This may suggest the rally is slowing, though it hasn’t reversed yet.

The MACD shows a bullish crossover. The MACD line has moved above the signal line, and the histogram is positive. These signals point to continued upside, assuming price holds and volume remains steady.

Chart Shows Structure Shift

A chart from kamran asghar shows a confirmed Change of Character (CHoCH), meaning the previous downtrend has been broken. Price is now pulling back into a key support zone between $114,000 and $115,000.

If this level holds, a push toward $121,000–$122,000 could follow. If the zone breaks, the next support area lies near $111,000–$112,000.

Whale Trade Draws Attention

A large BTC short worth $161 million was opened by the wallet 0xb317d2bc… just before last week’s crash. The entry was at $117,369.70, and the position is now over $6 million in profit. The short uses 10x leverage, with liquidation set at $123,500.

According to Tracer, this wallet also opened a similar trade minutes before a sharp move linked to a political event. “He 100% knows something,” the post claimed. While the timing has raised questions, no direct evidence of insider activity has been confirmed.

Outlook

If Bitcoin continues to hold above support, the move toward $120,000 remains in play. Traders are watching price reaction around current levels and whether buying volume can support another leg up.