Bitcoin (BTC) has decisively surpassed its previous all-time high of $111K, moving toward the psychological resistance level of $120K. However, a short-term correction may be on the horizon.
Technical Analysis
After a prolonged consolidation phase, Bitcoin has firmly broken above its previous all-time high of $111K. This breakout was supported by a notable surge in buying activity, leading to an acceleration of bullish momentum. Consequently, Bitcoin rapidly climbs toward the psychologically significant $120K resistance level.
While this move signals strong market confidence, the $120K region is likely to become a zone for profit-taking, potentially slowing down the rally temporarily. A short-term corrective phase is therefore expected, likely pulling the price back toward the $111K region for a retest.
Timeframe Analysis
On lower timeframes, Bitcoin has displayed strong bullish signals, decisively breaking above both the descending wedge pattern and the previous all-time high at $111K. Following a minor pullback to retest the breakout zone, the price resumed its upward surge, reaching the $120K mark.
Such impulsive rallies are often followed by short-term corrections as traders begin to realize profits. A healthy correction is likely to target the Fibonacci levels 0.5 ($113K) to 0.618 ($111K).
On-Chain Analysis
As Bitcoin trades at all-time highs near $120K, an interesting insight emerges from the Short-Term Holder SOPR metric. This indicator, which measures realized profits from investors who’ve held BTC for less than 155 days, remains notably muted.
Despite the recent surge, short-term holders aren’t cashing out aggressively, indicating that profit-taking is still relatively limited. Historically, the end of a bullish cycle is often accompanied by elevated SOPR values due to massive profit realization. But for now, the data suggests the market isn’t overheated, and the current rally could still have room to grow if new demand enters.
Bitcoin is confidently moving toward the key level of $120K, but the increasing willingness to take profits may lead to a short-term correction. Current data analysis indicates market non-overvaluation, opening opportunities for further growth.
