Bitcoin News Today: Bitcoin Consolidates Above Key Trend Line, Eyes $138,000 Breakout Potential

Bitcoin appears to be on the verge of a potential price resurgence, with recent technical indicators suggesting a historically bullish reawakening. Prominent analyst TradingShot has highlighted a key development: Bitcoin has begun consolidating above a critical trend line established on December 17, 2024, a level that previously acted as a major resistance before flipping into support. This shift, according to the analyst, could signal a continuation of the uptrend and set the stage for Bitcoin to reach the $138,000 level, which corresponds to the 1.5 Fibonacci extension [1].

The analyst further noted that Bitcoin's 1-day moving average (MA50), displayed as a blue-trend line on the chart, is aligning with the consolidation phase and may reinforce the current support level. This confluence of technical indicators suggests that Bitcoin is building momentum after a recent all-time high in July 2025, and is now entering a phase that mirrors the accumulation period seen earlier in the year [1].

Meanwhile, another market figure from investment firm Alphractal emphasized that for Bitcoin to maintain its bullish trajectory, it must overcome a key resistance level. The firm referenced the Long Term Power Law Chart, a logarithmic-based tool developed by analyst Joao Wedson, which has historically been accurate in mapping Bitcoin’s price movements. According to this analysis, Bitcoin needs to break above $122,000—currently a resistance on the long-term lower low chart—to confirm a continuation of the bullish phase [1].

Despite these positive signals for Bitcoin, the broader cryptocurrency market is currently undergoing a period of consolidation and volatility. Data from CoinMarketCap shows that the total market cap fell by 2.32% to $3.67 trillion, with Bitcoin trading at $117,767 at the time of reporting. While Bitcoin remains on a potential upward path, altcoins are increasingly capturing market attention and liquidity, as noted by a separate report. This trend is reflected in a weakening correlation between Bitcoin and altcoins, a historical precursor to increased volatility and potential liquidation events across the market [2].

The divergence in performance between Bitcoin and altcoins is raising concerns among analysts. While the top 10 altcoins remain within gains from the past seven days, they have experienced short-term declines. This suggests that capital is shifting toward alternative cryptocurrencies, which could introduce short-term uncertainty for Bitcoin’s price stability.

However, the overall bullish sentiment surrounding Bitcoin remains strong, with both technical and historical patterns reinforcing the possibility of a renewed bull market. Institutional and retail investors continue to express interest, but the market will need to closely monitor how these dynamics evolve, particularly in terms of Bitcoin’s ability to break through key resistance levels and maintain its position as the dominant asset in the crypto space [1][2].

Sources:

[1] Bitcoin to Smash $138,000—Historically Bullish Signal Suggests Bullish Reawakening (https://zycrypto.com/bitcoin-to-smash-138000-historically-bullish-signal-suggests-bullish-reawakening/)

[2] Altcoins are Draining Bitcoin's Liquidity, Correlation Signals a Warning Expert Reveals (https://zycrypto.com/altcoins-are-draining-bitcoins-liquidity-correlation-signals-a-warning-expert-reveals/)