At the moment, BTC appears to be “taking a breather” after a strong rally, but the positive sign is that the bulls have not given up much ground to the bears. This shows that investor confidence remains strong, with expectations of a continued uptrend.
According to data from Farside Investors, U.S.-listed Bitcoin ETFs recorded $799.4 million in net inflows on Wednesday—marking the 10th consecutive day of inflows. Since the beginning of July, more than $5.2 billion has flowed into BTC ETFs.
BTC Price Forecast: Is a Breakout Imminent?
Buyers attempted to push prices higher on Wednesday, but the long upper wick on the candlestick suggests strong resistance from sellers at the $120,000 level.
If BTC repeatedly fails to break above $120,000, a deeper pullback toward the 20-day Exponential Moving Average (EMA) around $113,528 could occur. This zone will be a key battleground: if BTC rebounds from it, bulls are likely to launch another attempt to break through the resistance between $120,000 and $123,218. A successful breakout could propel BTC to $135,729, and potentially to the pattern target at $150,000.
On the other hand, if bears manage to drag the price below the crucial $110,530 support level, it could trigger a trend reversal, pushing BTC down toward $105,000.
Currently, the 20-day EMA is flattening out, and the Relative Strength Index (RSI) on the 4-hour chart is hovering near the midpoint, suggesting a possible sideways range between $115,000 and $123,218 in the short term.
If the price breaks below $115,000, the neckline and the solid support at $110,530 will come into play. Buyers are expected to defend this level aggressively, as a breakdown below it could give the short-term advantage to the bears.
The first sign of bullish strength will be a breakout above $120,064. If this happens, BTC is likely to retest its previous all-time high at $123,218.
