Bitcoin Bulls in Control: $120,000 Breakout Could Spark Rally Toward All-Time High

Summary: Bitcoin (BTC) is trading near $118,000 after gaining 4.17% over the past week, boosting bullish sentiment in the crypto market. Analyst KillaXBT highlights key technical levels and outlines two potential price scenarios, with a breakout above $120,000 possibly setting the stage for a move toward record highs.

Technical Setup Points to Bullish Continuation

Bitcoin began August in a strong technical position, flipping its monthly open at $115,752 into support — a move often seen by traders as a bullish indicator. According to market analyst KillaXBT, this shift sets the stage for potential upside. However, the analyst cautions that historical patterns show Bitcoin commonly forms a wick early in new monthly candles, hinting at potential short-term volatility.

In a recent X post, KillaXBT discussed how BTC is currently testing a lower-timeframe (LTF) downtrend line. A confirmed breakout above this trendline could signal a move toward the $120,000 level — a zone of high liquidity and aligned with the previous weekly open of $119,414.

Scenarios for Bitcoin’s Next Move

The analyst has outlined two core scenarios. The primary view, supported by the existing bullish momentum, sees BTC pushing above $120,000 and testing the monthly high of $123,186 — nearing its all-time high. KillaXBT believes this is the more probable outcome, given the current uptrend and lack of bearish confirmation signals.

A secondary scenario involves Bitcoin losing steam and forming a lower high below $120,000, falling back under $115,700. In this case, significant support is expected around the $110,000–$112,000 range, particularly near the fair value gap (FVG) at $111,955.

Traders should also prepare for short-term dips early in the week, especially around Monday or Tuesday, as markets may briefly correct to remove overleveraged long positions before resuming upward movement.

Market Sentiment and Analyst Outlook

KillaXBT notes that confirmation of higher highs and higher lows on intraday charts would reinforce the current bullish structure. On the other hand, failure to maintain key support could rapidly shift sentiment bearish. Overall, market momentum remains positive, with cautious optimism dominating the outlook heading into the new week.

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Bitcoin Price Overview

As of writing, Bitcoin is trading at $117,792, registering a 1.11% gain over the last 24 hours. The current price action continues to support a potential test of the $120,000 level amid broader bullish momentum.