Bitcoin Tests Resistance at $125K: What’s Next? – BTC Price Analysis (October 7, 2025)
Bitcoin’s rally from late September shows signs of exhaustion as it approaches the $125K resistance level. After hitting a historic high of $126K, BTC is consolidating below this zone. Meanwhile, corporate giant Strategy pauses BTC purchases and issues dividends to shareholders. Technical analysis suggests a potential pullback to $120K–$122K or a breakout toward $140K if bullish momentum resumes. --- ### Bitcoin’s Price Action: Bullish Fatigue or Temporary Pause?
Bitcoin (BTC) is catching its breath after a relentless rally that began on September 28. As of October 7, 2025, the coin is down 2.5% to $123,020 (CoinGecko data), signaling a possible consolidation phase. The daily chart still shows higher highs and lows, but the last two candles have exhibited selling pressure—a classic sign of trend exhaustion.
Key levels to watch:
- Resistance: $125K (psychological barrier)
- Support: $120K (56-day EMA dynamic support)
- Bullish Target: $140K (double-bottom projection)
*Source: CoinAnk*
The RSI at 70 hints at an overheated market, but no bearish divergence is evident. A daily close above $124K could reignite upward momentum toward $128K–$130K.
Zooming into the 4-hour timeframe, BTC clings to an ascending trendline but faces stiff resistance NEAR $126K (red zone). The MACD’s bearish crossover and declining volume suggest a healthy consolidation. If the price fails to hold $122.5K, a dip to $120K (EMA support) is likely.
In a surprise move, Strategy—the world’s largest corporate BTC holder—paused its weekly purchases. CEO Michael Saylor cryptically tweeted: “No new orange dots this week,” referencing the company’s iconic BTC accumulation strategy. Instead, Strategy raised dividends for its STRC preferred shares to 10.25% annually, diverting capital from bitcoin to shareholder payouts.
“What happens when trillions of dollars realize they can earn 10.25% risk-free?” — @TheBTCTherapistWith $79B in BTC reserves, Strategy’s shift could signal a tactical pause rather than a long-term bearish stance. --- ### Outlook: Breakout or Correction Ahead?
The technical setup favors bulls, but BTC needs a decisive close above $126K to target $130K+. Otherwise, a pullback to $120K–$122K seems probable. Traders should watch: 1. Volume: Declining volume during consolidation is normal, but a spike is needed for breakout confirmation. 2. RSI: A drop below 60 on the 4-hour chart may precede deeper corrections. *This article does not constitute investment advice.*
--- ### FAQBitcoin Price Analysis (October 2025)
Why did Bitcoin’s price drop on October 7?
Profit-taking near the $125K resistance and Strategy’s pause in BTC purchases contributed to the 2.5% dip.
Is $140K still a realistic target for BTC?
Yes, if BTC clears $126K with strong volume, the double-bottom pattern projects a rally to $140K–$141K.
How does Strategy’s dividend move affect Bitcoin?
Short-term sentiment may cool, but Strategy’s $79B BTC holdings suggest long-term confidence remains intact.
