Bitcoin Faces $120,000 Resistance Level For Next Bull Cycle

Bitcoin has been relatively stable over the weekend, trading within the $117,000 and $118,000 range after a strong performance last week. A prominent online analyst has suggested that the cryptocurrency is at a critical juncture that could determine its trajectory over the coming weeks. According to a technical analysis model, if Bitcoin can overcome the next resistance level, it could surge to an unprecedented high of $143,000.

Joao Wedson, the founder and CEO of Alphractal, highlighted that Bitcoin faces significant resistance between $118,900 and $120,000. This assessment is based on the Bitcoin Power Law model, which provides a mathematical description of BTC’s historical price trends. The model estimates the network effect and adoption curve without speculation, offering long-term support and resistance levels on the Bitcoin price chart.

Wedson noted that the Power Law model indicates that Bitcoin must breach the Alpha Price, which is around $119,300, to enter the next significant phase of the bull cycle. This level is a major inflection point in the model, and a sustained break above it is necessary for the rally to continue. Wedson also mentioned that Bitcoin might need to consolidate and take some long traders out of the market before overcoming the $120,000 level.

A sustained breach of the $120,000 level would signal the beginning of a much bigger rally, with the target set between $143,000 and $146,000, according to Wedson. This range is predicted to mark the Bitcoin price top in this cycle. As of the latest update, Bitcoin is trading around $117,530, showing no significant movement in the past 24 hours but up nearly 9% on the weekly timeframe.