Bitcoin Aims for $135,000 as Weekly Close Crucial

Bitcoin is currently at a critical juncture, with its weekly close potentially determining its next significant move. To confirm a bullish continuation and bolster market confidence, Bitcoin needs to secure a strong weekly close above $107,720. This level is acting as a resistance zone, and breaking through it could unlock a new wave of bullish momentum, potentially driving the price toward the $130,000 to $135,000 range in the third quarter of this year.

Historical data suggests that a similar setup in the fourth quarter of 2024 led to an unstoppable rally, shattering resistance and fueling one of the strongest bullish legs of the cycle. The weekly chart indicates that Bitcoin is trading within a well-defined historical parallel channel, which has previously marked breakout points in October 2023 and October 2024, leading to significant upward moves. If this pattern continues, Bitcoin could be on track to reach the $150,916 target in October 2025. The channel provides a roadmap, with key breakouts signaling the start of rallies and price dips serving as accumulation zones.

On the 1-hour chart, Bitcoin is currently in a downward trend, but the price is attempting to bounce off a support zone near $106,500. This area is holding firm, providing a foundation for buyers to step in. Technical indicators support this potential shift, with the Relative Strength Index (RSI) recovering from oversold levels, hinting that selling momentum is waning. The Moving Average Convergence Divergence (MACD) indicator is nearing a bullish crossover, which could signal the start of upward momentum. However, for a meaningful reversal to hold, Bitcoin must overcome the critical resistance near $108,500. A breakout above this level with sustained volume will be crucial to confirm the trend and bullish momentum.

Bitcoin is currently consolidating inside a descending channel formation on the daily chart, a pattern that typically reflects a phase with a broader trend. Bitcoin is trading above the 50-day moving average, a technical level that is now solid for the bulls. A breakout above the descending channel would mark a shift in sentiment and momentum, potentially triggering a bullish continuation toward the $120,000 region, the next psychosocial target on the macro chart. Bitcoin has shown a strong breakout from the descending channel on the 1-day chart, signaling a shift in momentum. It is now consolidating above the resistance, which has turned into support. This consolidation above the breakout levels is a bullish continuation signal seen before the next leg higher. As long as Bitcoin holds this zone, the path remains open for a move toward $135,000.