Bitcoin’s Bullish Momentum Builds as Traders Eye $120K Breakout

Bitcoin (BTC) has surged past the 50-day simple moving average (SMA), signaling renewed short-term bullish momentum. The cryptocurrency is currently trading at $115,465.30, reflecting increased investor optimism driven by expectations of a possible Federal Reserve rate cut and easing tensions in the U.S.-China trade dispute.

Technical indicators reinforce this positive sentiment. The daily MACD histogram shows a fresh bullish crossover, while a 5- and 10-day SMA crossover suggests growing upward pressure. These signals typically indicate that traders are regaining confidence in Bitcoin’s near-term outlook.

Despite the encouraging momentum, analysts urge caution. The CoinDesk Bitcoin Trend Indicator (BTI) continues to register a downtrend, hinting that bearish sentiment may still linger beneath the surface. Additionally, Bitcoin remains below the Ichimoku cloud on the daily chart — a significant resistance zone that must be broken to confirm a sustained bullish reversal.

A decisive breakout above the Ichimoku cloud could open the path toward $120,000 and higher, marking a major shift in market structure. Until then, traders are watching closely for confirmation signals that validate this emerging trend.

Market watchers attribute Bitcoin’s recent upswing to growing expectations that the Federal Reserve may cut interest rates in its upcoming policy meeting this Wednesday. Lower rates often stimulate risk appetite, driving capital flows into alternative assets like Bitcoin. Moreover, signs of progress in the U.S.-China trade negotiations are improving global market sentiment, providing additional support to crypto assets.

While the technical outlook leans bullish, traders are reminded to monitor key resistance levels and remain vigilant for potential pullbacks as Bitcoin navigates a crucial phase in its market cycle.