Bitcoin Surges 1.05% to $109,711, Eyes $111,000 and $120,000 Levels

Bitcoin has reclaimed the $109,000 level, marking a significant milestone in its price trajectory. The cryptocurrency is now trading above key support levels, with analysts and traders closely monitoring the next potential price zones of $111,000 and $120,000. The recent price action on the 4-hour chart from Bitstamp shows Bitcoin trading around $109,711, with a 1.05% gain, holding firm above previous resistance zones. This level, considered critical in Elliott Wave theory, may mark the start of a larger impulse wave.

The Fibonacci 0.618 retracement level at $109,814 has been tested and reclaimed, signaling strength in the current structure. Elliott Wave counts indicate a new wave three advance might be underway, projecting a move above $111,835. Fibonacci extensions show that $120,000 is a potential target if the pattern completes. The volume profile on the right-hand side shows thick liquidity between $108,000 and $106,500, now acting as a major support block. Indicators also point to strengthening bullish divergence, with the Relative Strength Index (RSI) curving upward and the stochastic oscillator pushing higher.

With Bitcoin maintaining higher lows and reclaiming key zones, the next leg of price movement could redefine short-term market structure. The price has formed a well-defined zone of high liquidity between $108,000 and $106,000, visible on the volume profile histogram. This level, which previously acted as resistance, now serves as a significant accumulation area for bullish continuation. If the price remains above this block, upward momentum could intensify quickly.

Order book imbalances and thin resistance beyond $111,000 suggest short sellers may face a liquidation cascade. This would add fuel to an already growing upside pressure, making the next 48 hours pivotal for short-term direction. The momentum indicators, including the RSI and stochastic oscillator, have started curving upward on lower timeframes, showing strength after a brief dip below neutral. Similarly, the stochastic oscillator on the 4-hour chart confirms a fresh bullish crossover, typically viewed as a buy signal during trend continuation.

Volume analysis shows rising demand bars on breakout attempts, with decreasing sell-side pressure near the previous consolidation zones. Traders see these indicators as confirmation that the recent pullback has reset momentum without breaking bullish market structure. Bollinger Bands are widening slightly, allowing for higher price volatility, while the 50 EMA is curling upward below the price action. Combined, these signals suggest market conditions now favor another leg up, especially if the $111,000 zone is cleared.

With liquidity stacked below and upward pressure building, Bitcoin’s structure appears primed for a clean run to $120,000. The major question now is whether this move can sustain momentum or if it will trigger a liquidity trap at resistance. Chart levels and volume metrics suggest that $111,000 is the immediate target to watch. If that breaks, $120,000 may follow quickly under strong buying conditions.