Bitcoin Approaches Breakout as Momentum Builds Near $120K Resistance

Bitcoin is tightening its grip on the $120,000 resistance level, signaling that a major price breakout could be imminent. Recent price action has shaped bullish patterns on multiple charts, with analysts pointing to growing momentum across the board.

A classic “bull flag” pattern points to a breakout

Well-followed market analyst Crypto Rover notes that Bitcoin has been forming a classic “bull flag” pattern after its recent surge. This structure often reflects a temporary pause before a strong trend continuation.

The flag’s support zone holds steady around $115,000, while resistance near $120,000 has seen multiple tests. These repeated touches, paired with higher lows, signal growing buyer interest.

Consequently, the current consolidation phase may indicate a healthy accumulation zone. A breakout above $120,000 would likely activate a new leg up, targeting $130,000 or even higher levels. Such a move would require strong volume to confirm the pattern. Notably, volume has started to rise gradually, supporting the bullish outlook.

A second pattern confirms the bullish outlook

Meanwhile, another technical view from thescalpingpro highlights a breakout from a falling wedge. This pattern also carries a bullish implication, especially when occurring during an uptrend.

Related: Bitcoin Gold Rush: Accumulation of Bitcoin by Major Institutions Boost its Adoption

Bitcoin recently pushed above the wedge’s upper line, around the $118,000–$120,000 region. This breakout projects a possible climb toward the $126,000–$128,000 range.

$40 billion in Open Interest signals a big move is near

Adding weight to the bullish narrative, Carl Moon points to surging open interest across major crypto exchanges. Open interest now exceeds $40 billion, with Binance leading, followed by Gate.io and Bybit.

Related: Bitcoin Eyes $150K as Halving Progress, Liquidity, and Chart Patterns Align

The increase in open positions has closely mirrored Bitcoin’s ascent from $80,000 to its current level near $119,000.

Source: X

Moreover, open interest rising alongside price often signals the buildup of speculative energy. This can precede sharp movements, either upward or downward. Carl warns that this surge may lead to increased volatility. Traders should monitor key metrics like volume spikes and funding rates for early signals.
Bitcoin as of press time trades at $118,782, marking a modest daily increase. Despite a minor weekly dip, momentum appears firmly bullish.