Bitcoin May Launch Recovery To $120,000 If This Condition Holds – Details

[Ben Graham]

In the last week, Bitcoin’s correction took another drastic turn as prices retested the psychological $100,000 price zone, triggering heavy waves of liquidation. Although the premier cryptocurrency witnessed some rebound after, the current market price remains 19.02% away from the all-time high at $126,198. In the hope of a sustained recovery, a popular analyst with the X username PlanD has outlined one critical market condition.

Bitcoin 50-Week EMA Holds Bullish Structure – Analyst

In an X post on November 7, PlanD shares insightful analysis on Bitcoin’s latest price movement. The prominent market expert notes Bitcoin’s bounce of $100,700 may have confirmed a bottom formation. Although price dips below $100,700 could still occur, PlanD emphasized the importance of watching out for a bullish weekly close above this crucial support level.

Notably, the importance of the $100,700 price zone comes from its alignment with Bitcoin’s 50-week exponential moving average (EMA). Since 2022, this indicator has acted as a crucial metric, with price crosses often signaling a change in market trends. In the present bull run, Bitcoin has decisively retested the 50-week EMA thrice, each time resulting in a price bounce to higher levels.

Amid the recent correction, Bitcoin famously hit this support zone again, which PlanD describes as critical to keeping a bullish structure for a possible rebound. As long as market bulls hold the price point above this indicator, the analyst predicts another bullish price action with potential targets between $116,000 – $120,000 in the short-term.

Following a steady recovery, PlanD’s further analysis suggests that Bitcoin maintains strong upside potential, with its current momentum aligning with an ascending channel that began in late 2024 and projecting a possible move toward $176,000. In parallel, a broader cup-and-handle formation has been developing since 2023, signaling an even larger long-term target around $340,000, reinforcing the bullish outlook for the asset.

Bitcoin Price Overview

At the time of writing, Bitcoin trades at $102,277, reflecting a slight 0.23% loss in the last 24 hours. In tandem, weekly and monthly losses of 6.98% and 16.23% indicate that bearish sentiment remains dominant despite a modest price bounce off $100,000. 

Bitcoin’s retest of the $100,000 level proved pivotal in the ongoing correction, triggering several adverse developments. These included a drop in the investors’ realized price to below $50,000, and losses among top buyers reaching approximately $0.16 billion per hour.

All these events, including the subsequent price rebound all underscore the critical psychological importance of the $100,000 zone in the current market structure.