Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price

Cryptocurrency

Summary:

Bitcoin braced for further gains toward $120,000 after finishing the week in the green above $115,000, new price analysis concluded.

Key takeaways:

Bitcoin’s weekly close above $115,000 signals bullish strength.

BTC’s bull flag breakout could trigger a rally to $120,000.

Bitcoin may see further upside over the next few days after BTC/USD ended the second week in the green above $115,000, according to analysts.

Why Bitcoin is bullish above $115,000

Bitcoin price completed its second consecutive week of gains on Sunday, 8% above its Aug. 30 low of $107,270, per data from Cointelegraph Markets Pro and TradingView.

Bitcoin reclaimed the crucial level of $115,000, which has capped the price since Aug. 24. Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_1

Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_1

BTC/USD weekly chart. Source: Cointelegraph/TradingView

Trader Titan of Crypto noted that $115,000 was the key level to watch on the weekly time frame.

An accompanying chart revealed that this level aligned with the Tenkan, a line in the Ichimoku Cloud indicator that identifies short-term momentum and potential trend changes.

“A confirmed weekly close above it would strongly reinforce the bullish case for #BTC.”BTC/USD weekly chart. Source: Titan of Crypto

Historically, the price breaking above the Tekan often signals a short-term uptrend, especially when the Cloud itself is in the bullish territory and the price trades above it.

Most recently, the BTC/USD pair rallied 44% to the current all-time highs above $124,500 after the price crossed above the Tenkan in late April.

Analyst AlphaBTC said BTC/USD must hold above $115,000, particularly with volatility expected ahead of FOMC this week.

“A tap of $118K is likely at the start of the week.” Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_3

Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_4

As Cointelegraph reported, Bitcoin should pay close attention to the $115,000 psychological level going into a key macro week.

BTC price to $120,000 next?

The upcoming FOMC decision on Wednesday, with a 94% chance of a 25 bps rate cut, is a key driver of potential gains for Bitcoin. Lowering interest rates has historically boosted risk assets like BTC, and a dovish tone from Fed Chair Jerome Powell’s speech after the meeting could propel Bitcoin’s price toward $120,000.

From a technical perspective, the BTC/USD pair traded inside a bull flag on the four-hour chart, as shown below.

A four-hour candlestick close above the flag at $115,800 would confirm a bullish breakout, paving the way for a run-up to the technical target of the prevailing chart pattern at $122,000. Such a move would bring the total gains to 6% from the current levels. Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_5

Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_5

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

The 50-period and 200-period simple moving averages validated a “golden gross” on Sunday, further reinforcing BTC’s upside potential.

Several analysts project Bitcoin’s short-term rally to $120,000 based on bullish futures data and a potential breakout from an inverse head-and-shoulders pattern.

Analysts like Jelle project a 35% rally to $155,000, citing a bullish signal from the weekly Stochastic RSI. Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_6

Traders Say Bitcoin’s ‘Bullish’ Weekly Close Sets Path for $120K BTC Price_6

Source: Cointelegraph

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