Key Points:
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Bitcoin is eyeing a return to the $120,000 level as positive market sentiment builds during the Wall Street trading session.
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Market participants are keenly awaiting a phase of price discovery, believing it’s increasingly probable.
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The Relative Strength Index (RSI) is trending upwards alongside the price, without a significant pullback to test support.
Bitcoin (BTC) made a move towards $120,000 as Thursday’s Wall Street trading day began, with previous bearish predictions giving way to anticipation of new all-time highs shortly.
Bitcoin Traders Gear Up for Price Discovery
Data originating from Cointelegraph Markets Pro combined with TradingView charts illustrate BTC/USD strengthening by another 1% today.
In the absence of major retracements overnight, the currency pair has established a strong foundation, moving closer to initiating price discovery after a period of more than a month and a half.
Rekt Capital, a well-known trader and analyst, observed that even a consolidation phase is likely to only test the $117,000 level.
“Bitcoin has registered a Daily Close above $117.3k (blue),” he posted on X, along with a supporting graphic.
“Any brief dips into the blue zone, should they occur, would act as a post-breakout verification, reinforcing a return into the $117.3k-$120k blue-black price band.”
Similarly, the trader Jelle expressed enthusiasm for a fresh upward push initiated from the newfound support.
“Bitcoin’s performance is currently mirroring our projections exactly,” he shared with his X followers, updating his strategy with $118,000 representing the pivotal breakthrough point.
“Maintaining levels above $118k from this juncture will pave the way for fresh all-time highs. Welcome to Uptober.”
Another market observer, BitBull, suggested that the recent six weeks characterized by corrective price action have now concluded.
“$BTC has now printed a higher high on the daily chart. This constitutes a significant indicator that the preceding downtrend has finished,” he remarked.
“The only remaining requirement is a daily close above $118K, at which point new all-time highs will quickly materialize.”
BTC Price All-Time High the “Only Thing Missing”
Previously, Cointelegraph reported on initial warnings emerging from the Relative Strength Index (RSI) (RSI), signaling “overbought” conditions on short-term timeframes.
Related: Bitcoin’s next ‘explosive’ move targets $145K BTC price: Analysis
Analyzing the four-hour chart, the RSI subsequently recorded a marginally higher high, reaching 82.3 – its highest “overbought” level since mid-July.
Discussing the RSI, Caleb Franzen, the individual behind the financial research outlet Cubic Analytics, contends that new all-time highs remain probable due to previous bullish divergences.
“In light of the multiple bullish RSI divergences observed on the 1, 2, and 4-hour charts, I predict this development is forthcoming,” he stated in an X post.
Franzen also pointed out that BTC/USD has surpassed its anchored volume-weighted average price (AVWAP) – an indicator reflecting the average price adjusted by volume over a specific duration.
He concluded that price discovery is currently the “only element missing” to complete the positive conditions.
This article should not be interpreted as providing investment advice or recommendations. Investing and trading activities carry inherent risks, and it is crucial for readers to perform their own thorough research before making any decisions.