Bitcoin Price Can Target $120K If It Holds This Support Zone

Key Insights:

• Bitcoin price can remain bullish if it successfully maintains $the 110,500 support.
• Any breakout beyond $120K is likely to be a strong rally toward the resistance of $131K.
• The gold bull flag shows that Bitcoin can break out to above $185K over the next few months.

Bitcoin price has continued to stay bullish, and traders are keeping a close eye on its next direction. Analysts noted that the top crypto must hold the support and momentum for a breakout toward the $120,000 level.

Bitcoin Price Holds Key Support Above $110,500

Analyst CRYPTOWZRD said the daily close of Bitcoin price was just bullish, indicating prudent optimism. The analyst emphasized that BTC still needs additional support for the confirmation of a sustainable rally.

According to the analyst, the top crypto needs to defend $110,500 to maintain the bullish structure. Similarly, a breakout above the $113,200 resistance level could send BTC price towards the $120,000 level. This move could set the stage for continued upward momentum.

A major retest zone found in the analysis was located at $110,400 if the momentum weakens. While this may be a long opportunity, there is still risk involved. CRYPTOWZRD also pointed out that weakness in Bitcoin Dominance indicates that altcoins may benefit if Bitcoin consolidates.

Breakout Signals Open Path to $120K Resistance

Marcus Corvinus highlighted Bitcoin’s rebound from the trendline and a breakout above an important downward resistance level. He called that a bullish reversal, showing renewed strength.

Corvinus identified near-term resistance at the level of $115,000-$116,000. Interestingly, breaking above this range could validate continuation and set up a path toward $120,000 in the short term.

However, this analysis cautioned that support between $110,000 and $108,500 still remains crucial. A break below that level would negate the bullish formation. For now, rejections of lower levels showed that buyers are regaining confidence.

More so, the analyst added that buyers must maintain the momentum to validate further upside. A successful breakout could turn market sentiment decisively higher toward new levels.

Correlation with Gold Points to $185K Potential

Meanwhile, Tephra Capital underlined the correlation between Bitcoin and gold, which has persisted for many years. The company referenced the fact that BTC tends to follow the price action of gold with an average lag of approximately 200 days.

Gold jumped to $3,630 per ounce this year, and ETF holdings stood at 2,905 tonnes in August. With a year-to-date gain of 37%, gold has performed better than Bitcoin’s 22% rally. It has further solidified gold’s position as a safe-haven asset.

If Bitcoin price continues its historical lag, it could rally to $185,000 in the next 200 days. This projection indicates a potential upside of 70% from current levels, underscoring the strength of the gold-Bitcoin interplay.

Interestingly, this trend may be driven by macroeconomic circumstances. Rate cuts and increased liquidity from the Fed could be a positive factor for both gold and Bitcoin, as investors look for safe havens from the impact of inflation.

Macro Risks Could Send Gold to $5,000

Goldman Sachs has presented ambitious scenarios for gold following rising political and economic uncertainty. The bank identified a base-case of $4,000 per ounce by mid-2026 and tail-risk estimates reaching out to $5,000 per ounce.

Analyst Samantha Dart said the threats to Federal Reserve independence could undermine dollar confidence. Increasing inflation and loss of confidence in monetary policy may push more demand into safe-haven assets, such as gold and Bitcoin.

Goldman Sachs estimated that if only 1% of U.S. Treasuries that are privately held moved into gold, the price of gold could go up to $5,000. Such a change would be a significant reallocation of capital under stressed conditions.

Thus, using the Gold-to-Bitcoin correlation, the upside becomes even more obvious. Over the past decade, for every 15% increase in gold, Bitcoin would have made 250% gains. If gold reaches $5,000, Bitcoin price could surpass $220,000 in the following cycle.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.