Following a strong performance towards the end of the week, the Bitcoin price has stabilized over the weekend, showing signs of indecision and moving within the $117,000 and $118,000 range.
A well-known online analyst suggests that Bitcoin is at a crucial point that could determine its future in the coming weeks. Insights from a technical analysis model indicate that BTC could reach a record high of $143,000 once it surpasses the next resistance level.
BTC Must Break Through Resistance to Sustain Rally
According to Alphractal founder & CEO Joao Wedson, Bitcoin is facing significant resistance between $118,900 and $120,000 based on the Bitcoin Power Law model. This model analyzes historical price trends to determine support and resistance levels.
The Power Law model suggests that Bitcoin needs to breach the Alpha Price, approximately $119,300, to continue its upward momentum.
To move past the psychological $120,000 level, Bitcoin must demonstrate resilience and possibly undergo consolidation to shake out some long traders, as per Wedson’s analysis.
A sustained breach of $120,000 could lead to a larger rally, with a target range of $143,000 to $146,000 for Bitcoin’s price peak in this cycle.
Bitcoin Price Overview
Currently, BTC is trading around $117,530 with minimal movement in the last 24 hours. Despite this, the cryptocurrency has seen a weekly gain of nearly 9%.
Featured image from iStock, chart from TradingView