Key points:
Bitcoin is targeting a $120,000 recovery as bullish momentum builds with the Wall Street opening.
Traders are optimistic about price discovery, viewing it as increasingly likely.
RSI rises alongside price without triggering a sustained support retest.
Bitcoin (BTC) neared $120,000 during Thursday’s Wall Street open as bearish BTC price trends transitioned towards “next” all-time highs.
Bitcoin traders prepare for price discovery
Data from Cointelegraph Markets Pro and TradingView indicated BTC/USD increasing another 1% on the day.
With no significant pullbacks overnight, the pair is solidifying support as it edges closer to price discovery after over six weeks.
Reacting, renowned trader and analyst Rekt Capital emphasized that even a consolidation phase might only retest $117,000.
“Bitcoin has Daily Closed above $117.3k (blue),” he wrote with a chart on X.
“Any dips into blue, if necessary, would represent a post-breakout retest to fully confirm re-entry into the blue-black range of $117.3k-$120k.”
Trader Jelle also expressed enthusiasm for a new upward move from the emerging support.
“So far, Bitcoin is progressing as intended,” he told his X followers while revising a strategy with $118,000 marked as the critical breakthrough level.
“Maintain $118k from this point, and new all-time highs will follow. Uptober is here.”
Trader BitBull indicated that the corrective price actions of the last six weeks had now concluded.
“$BTC has established a higher high on the daily timeframe. This is a significant indication that the downtrend has ended,” he commented.
“All I need now is a daily close above $118K for a new ATH to occur swiftly.”
BTC price all-time high “only thing missing”
Earlier, Cointelegraph reported on initial signals from the relative strength index (RSI), which had entered “overbought” territory on shorter timeframes.
Related: Bitcoin’s upcoming ‘explosive’ move aims for $145K BTC price: Analysis
On the four-hour chart, RSI subsequently reached a marginally higher high of 82.3 — its highest “overbought” level since mid-July.
When discussing RSI, Caleb Franzen, founder of financial research resource Cubic Analytics, suggested that new all-time highs were still feasible due to prior bullish divergences.
“Given all the bullish RSI divergences on 1, 2, and 4-hour timeframes, I believe this will occur sooner rather than later,” part of an X post read.
Franzen noted that BTC/USD had surpassed its anchored volume-weighted average price (AVWAP) — a measure of average price adjusted by volume over a specified timeframe.
He concluded that price discovery was now the “only thing missing” in the bullish equation.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
