Bitcoin - Blue Skies, Retest Before $125k?Bitcoin has pushed into blue skies after breaking through a major resistance zone around 110,000 USD. The breakout was sharp and impulsive, pushing price well into uncharted territory above 117,000. At these levels, traditional resistance becomes harder to pinpoint, and the market often behaves irrationally, so caution is warranted. With all-time highs being challenged, any small retracement must be handled with precision.
Support and Retest Zones
The previous resistance zone between 109,000 and 111,000 has now turned into a potential support area. This level acted as a ceiling for weeks and was finally broken with strong momentum. Price already had a minor retest on the breakout candle, which offers a bullish sign of acceptance. However, a deeper retest of this same zone remains a valid possibility, especially if short-term profit-taking intensifies.
Trendline Confluence
Alongside the horizontal support, we have an ascending trendline that has guided price from the June lows. This trendline now intersects with the 111,000–113,000 area, offering a secondary potential bounce level. If Bitcoin holds the trendline, a shallower correction could be enough to reset before another rally. But if we break below it, the horizontal support remains the final stronghold before deeper downside risks emerge.
Short-Term Scenarios
There are two likely short-term paths here. Either Bitcoin continues higher without a deep pullback, targeting 120,000–125,000 directly, or we see one more sweep into the 111,000 area before the trend resumes. The first scenario would trap sidelined traders, forcing late entries at higher levels. The second would provide a clean retest of structure, fueling a healthier, more sustainable breakout.
Price Target and Expectations
Assuming the retest scenario plays out cleanly and price confirms support at either the trendline or the former resistance zone, upside targets sit around 120,000 as the next psychological barrier, with 125,000 as a likely extension. These are natural magnet levels in a trending environment, especially with momentum still intact from the previous breakout.
Conclusion
Bitcoin is currently in price discovery, which means the structure must guide our expectations. A retest of either the trendline or former resistance could provide the next best entry. As long as we hold above the green support zone, the bullish structure remains intact, and higher targets remain in sight.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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