Bitcoin price surpasses $118,000 with analyst forecasting $131,000 breakout
Bitcoin’s price surged past $118,000 today, indicating a strong bullish trend as traders set their sights on a potential breakout towards $131,000. Boosted by positive regulatory developments and growing institutional demand, the leading cryptocurrency is poised for significant gains leading up to the 2025 Bitcoin halving.
Technical analysis reveals that Bitcoin has crossed the crucial $118,000 mark, inching closer to its all-time high of $122,838. With support levels at the 50-day EMA and the Fibonacci retracement level around $117,518, BTC is in a favorable position for upward movement. Resistance lies at $120,500, while support is at $115,700, indicating a potential rally from current levels.
The Relative Strength Index (RSI) at 63 signals room for further growth before BTC becomes overbought. The $117,500 to $118,800 range is a critical support zone, and a strong close above this range could trigger a rapid push towards previous highs. Institutional activity, with companies holding over 628,000 BTC and ETF inflows of $935 million, underscores market confidence.
Bitcoin’s price rally is further supported by regulatory tailwinds, with states like Texas establishing Bitcoin reserves and federal bills clarifying digital asset regulations. President Trump’s recent rule allowing 401(k) plans to include cryptocurrencies also bodes well for Bitcoin’s future. The upcoming 2025 Bitcoin halving event, known to reduce new supply and boost prices, adds a fundamental catalyst to BTC’s bullish case.
Analyst Donald Dean identifies a volume shelf between $116,000 and $118,000 as a potential launchpad for Bitcoin towards $131,000. Should BTC maintain support above this level and gain momentum, a breakout to the 1.618 Fibonacci extension could bring significant upside. Although market sentiment is positive, some predictions suggest short-term volatility between $112,000 and $117,000 before a powerful upward surge.
Bitcoin’s consolidation above $118,000 signifies the cryptocurrency’s resilience, with potential for a breakout towards $131,000 in the near future. Growing institutional adoption, favorable ETF news, and the looming halving event are positive indicators for Bitcoin’s long-term outlook. While market volatility remains a concern, Bitcoin’s strong position and ongoing developments suggest a promising future for the leading cryptocurrency.
