Bitcoin USD Eyes $127K: V-Shape Recovery Possible Soon?

Bitcoin USD is showing strong bullish momentum following a V-shaped recovery and a breakout from a falling wedge pattern. With critical resistance levels surpassed, the cryptocurrency is projected to target $108,370.60, $117,908.14, and $127,942.43 in the short-to-mid term.

Recent whale activity, including the withdrawal of 2,173 BTC, further signals reduced selling pressure. It also shows a potential continuation of the rally.

V-Shaped Recovery and Falling Wedge Breakout

The daily chart illustrates a V-shaped recovery, often associated with a strong reversal from bearish conditions. The bulls have driven BTC price back up from a crucial support area at $88,000-$90,000. This is the key to the current upswing.

A falling wedge pattern, a bullish formation that consists of two converging lines that slope downwards, is supportive of the upside path. Such a breakout indicates that the consolidation process has been completed and the market continues to develop with an upward trend.

The breakout target of $110,000 can be derived from the height of the wedge line and represents a psychological level.

Bitcoin USD Key Levels of Support and Resistance

The price of bitcoin is at $96,709 after a 5.45% correction. This may have been due to profit-taking or testing of breakout support levels. Key levels have been defined for both support and resistance for the next directional breakout.

1-day Bitcoin USD trading chart | Source: Tradingview

The first area of interest is $95,000 which is the breakdown area of the falling wedge and a minor consolidation zone. A stronger support is found at $90,000, that is a round figure and also a prior level of support.

On the opposite, the first level of resistance is observed at $100,000 where there are many sellers. Breaking this resistance could open the path to the first target of $108,370.60 with other target resistance levels at $117,908.14 and $127,942.43.

Momentum Indicators and Whale Activity

As mentioned earlier, momentum indicators afford further appreciation of Bitcoin’s possible path. The Relative Strength Index (RSI) stands at 49.44 while still in the neutral zone, meaning that the market is not overbought or oversold.

A breakthrough 60 on the RSI might suggest that buying pressure has picked up again, whilst a break below 40 could suggest that the buying pressure has started to fade.

Also, whale activity has been a significant driver of Bitcoin’s price surge. The most recent data shows that 2,173 BTC have been pulled out of exchanges, which points to long-term storage by big investors. This diminished selling pressure coupled with rise in buying pressure enhances the possibility of Bitcoin’s path towards its targets.

Bitcoin USD Price Targets and Fibonacci Levels

Bitcoin USD chart forms a rounded bottom pattern that corresponds to the key Fibonacci extension levels, thus supporting the potential bull targets

The first target of $108,370.60 aligns rather well with the 0.618 Fibonacci level. This should make it a strong resistance level.

The second target of $117,908.14 is in line with the 1.0 extension level. The final target of $127,942.43 is in line with the 1.618 level.

Possible Outcomes for Bitcoin Price

Bitcoin USD levels are determined by whether a certain level of support is maintained and whether a resistance level is breached. In a bullish case, BTC holds the $95,000 level and breaks through the $100,000 barrier.

This would likely lead the price to rally towards $108,370.60. There can be further upward momentum pushing the price toward $117,908.14 and $127,942.43.

In a bearish situation, if the price falls below $95,000, it may lead to more selling pressure and push the price down towards $90,000. This could slow down Bitcoin’s journey, but the long-term bulls will not be broken.