Technical indicators signal strong bullish continuation after major consolidation phase
Bitcoin (BTC) is approaching a crucial technical milestone as it trades near the $126,000 resistance zone, signaling a potential breakout that could redefine short-term market sentiment. After months of range-bound movement, BTC has climbed more than 27% since mid-September, showing renewed investor confidence and growing institutional accumulation.
Recent price action on the daily BTC/USD chart highlights a clean breakout from a descending channel, supported by increasing volume. The green demand zone near $110,000 acted as a key accumulation area, while the upper red resistance zone around $126,000 now serves as the final barrier before potential price discovery.
Market strategists suggest that a daily close above $126K could confirm a technical breakout, opening the path toward the $135,000–$140,000 region.
“The structure shows a classic bullish continuation pattern,” said a senior market analyst at BitXJournal. “Bitcoin’s repeated rejections in the mid-range have built a strong base, and breaking this red zone could ignite the next wave of upside momentum.”
Technical data also reveals falling resistance trendlines now acting as support, aligning with growing trading volume — a sign of healthy breakout pressure. The RSI remains within neutral territory, indicating room for further upside before overbought conditions appear.
According to on-chain metrics, exchange balances continue to decline, suggesting strong holding behavior among long-term investors. Institutional demand has also picked up, as Bitcoin’s role in treasury diversification gains traction across global firms.
“As long as Bitcoin holds above the $118K–$120K support band, the bullish thesis remains intact,” According to BITX analyst. “A sustained move beyond $126K could mark the beginning of a new expansion phase similar to the early 2021 pattern.”
With momentum building and resistance weakening, Bitcoin’s next decisive move could establish the tone for the remainder of Q4 2025.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.