Bitcoin Nears $120,000 as Bullish Pattern Repeats

Bitcoin’s recent price movements have exhibited a narrowing trend, reminiscent of past breakouts that were followed by strong rallies. The cryptocurrency’s chart displays three similar flag patterns, each of which has historically led to significant price increases toward new highs. Currently, Bitcoin is trading within a descending channel, and if it breaks above the $111,000 mark, it could swiftly move toward the $120,000 resistance area.

Bitcoin’s latest chart indicates a recurring trend with a potential strong breakout targeting the $120,000 level. This pattern mirrors past bullish moves, each forming after a descending consolidation channel. The image shared on July 4, 2025, shows Bitcoin trading near $107,500 after briefly hitting $109,799. Three breakout phases are highlighted. The first occurred after a long-term horizontal resistance was broken in late 2024, sparking a steep rally toward $90,000. A similar breakout happened in early 2025 when Bitcoin broke out of another downtrend range.

A third breakout is now anticipated. Bitcoin is seen inside a narrowing channel, slightly tilted down, following a pattern similar to the previous breakouts. Each rally formed after a cooling phase inside descending resistance channels. Green arrows on the chart signal rising momentum and a pattern that may push BTC well above $115,000 if the breakout confirms. Technical observers note that history may not repeat exactly but tends to rhyme in crypto markets. Each bullish move has emerged from a descending formation, where prices consolidated for weeks before rising sharply. The first consolidation zone spanned over 120 days before Bitcoin broke out above $38,000 in October 2024. The second breakout followed a 75-day downward channel. Bitcoin rebounded strongly, pushing past $100,000 by March 2025. The current pattern, now in its 60-day phase, mirrors the previous two, only narrower and shorter in length.

The commentary beside the chart raises a key point—each rally seems to show less power. A user asked why “the moves are getting smaller and smaller.” In response, the chart’s poster noted Bitcoin had “a lot of excitement and needs some time to cool off before the next eruption.” This signals reduced volatility in upward legs. The slope and range of each rally have narrowed, possibly due to reduced retail participation or institutional caution. Still, the overall structure of bull-flag formation remains visible.

The pivotal question now is simple: will Bitcoin repeat its past structure and break out toward $120,000 in the coming weeks? Price action suggests a third breakout is forming. As of the chart’s latest data, Bitcoin trades at $107,527 with a slight -1.93% dip on the day. Yet support holds firm, and buyers seem to defend the lower trendline. If the upper boundary of the channel near $111,000 breaks, momentum could lift BTC swiftly toward the next resistance between $118,000 and $120,000. The green arrow projected on the chart signals this path, assuming buyers reclaim strength. Market watchers note the pattern’s consistency. Each breakout followed a correction phase, a reset in sentiment, then a fast upward move. Bitcoin’s repeat behavior shows possible algorithmic trade patterns or institutional strategies at play.

Bitcoin has recently shown signs of a potential bullish trend, with analysts noting the formation of a third harmonic pattern within a falling channel. This pattern, which has been observed over the past few weeks, suggests that Bitcoin could be poised for a significant upward movement. The pattern, combined with increasing volume, indicates that buyers are stepping in to absorb the remaining supply, which could drive the price higher. The latest data shows that Bitcoin has consolidated in the $100K–$110K range, with volatility easing and realized profits and transfer volumes declining. This market fatigue could be a precursor to a breakout, as the cryptocurrency seeks to establish a new support level. The formation of a higher high above the $105K mark further confirms that the uptrend is still intact, and market sentiment remains bullish.

According to analysts' forecasts, Bitcoin could potentially reach $120K in the near future. This projection is based on the harmonic pattern and the overall market sentiment, which suggests that the cryptocurrency is poised for a significant upward movement. However, it is important to note that this is a forecast and not a guarantee of future performance. The recent reactivation of two Bitcoin wallets, which had been dormant for over 14 years, has also caught the attention of the market. These wallets transferred 80,000 BTC, valued at over $8.69 billion, as an early holder emerged from hibernation. This event has added to the market's bullish sentiment, as it suggests that early investors are confident in the long-term prospects of Bitcoin.