Bitcoin Primed for Explosive Rally After Weeks of Sideways Squeeze?

BTC's coiled-spring consolidation may finally snap—traders eye breakout as volatility compresses to 2025 lows.

The patience game pays off

After months of grinding between $60K-$65K, Bitcoin's tightening Bollinger Bands scream 'volatility eruption.' Last time this happened? A 40% monthly rip to new ATHs.

Liquidity vacuum ahead

Market makers are trapped—too many leveraged shorts below range, too many greedy longs above. When this dam breaks, someone's getting liquidated (probably the overconfident hedge funds).

The cynical kicker

Wall Street will claim they saw it coming—right after they finish revising their 'crypto winter' doom reports from last quarter.

Bitcoin Price Aims Key Upside Break

Bitcoin price started a fresh increase from the $115,000 zone. BTC climbed above the $116,500 and $117,800 resistance levels to MOVE into a positive zone.

Besides, there was a break above a key bearish trend line with resistance at $118,300 on the hourly chart of the BTC/USD pair. The bulls were able to push the price above the $118,500 resistance. A high was formed at $119,795 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $114,733 swing low to the $119,795 high.

Bitcoin is now trading above $118,800 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $119,800 level. The first key resistance is near the $120,000 level.

The next resistance could be $120,500. A close above the $120,500 resistance might send the price further higher. In the stated case, the price could rise and test the $122,500 resistance level. Any more gains might send the price toward the $122,500 level. The main target could be $123,200.

Another Drop In BTC?

If Bitcoin fails to rise above the $120,500 resistance zone, it could start another decline. Immediate support is near the $118,600 level. The first major support is near the $117,800 level.

The next support is now near the $117,250 zone or the 50% Fib retracement level of the upward move from the $114,733 swing low to the $119,795 high. Any more losses might send the price toward the $116,600 support in the near term. The main support sits at $115,500, below which BTC might continue to move down.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $118,600, followed by $117,250.

Major Resistance Levels – $119,800 and $120,500.