Bitcoin Eyes $120,000: Market Sentiment Shifts to Bullish as 2025 Approaches

Bitcoin has faced challenges reclaiming the $100,000 support level over the past few days, reflecting short-term market hesitation. 

However, the broader macro perspective indicates that BTC remains poised for significant gains heading into 2025, with bullish sentiment gradually taking hold.

Bitcoin’s New High May Not Be A Long Shot

The aggregate cost basis for short-term holders (STHs) currently resides at $86,800, a value not far from Bitcoin’s current price of $94,170. Historically, STHs are quick to sell during price fluctuations. However, with these investors sitting on unrealized gains of 7.9%, they are more likely to hold as market expectations lean bullish.

This cautious optimism stems from growing confidence in Bitcoin’s macro outlook. STHs, bolstered by market sentiment, appear ready to maintain their positions. With Bitcoin nearing critical resistance levels, the possibility of higher price targets incentivizes holders to avoid premature exits, reinforcing the bullish case for 2025.

Bitcoin STH Realized Price. Source:  Glassnode

Analyst Crypto Rover recently tweeted that Bitcoin’s bounce from the $94,000 level could “create new millionaires.” The resilience displayed at this price point, tested repeatedly over the past six weeks, highlights its importance as a key support level.  

This sustained bounce is driving predictions of a rise to $112,000 in the near term. Bitcoin’s ability to hold above $94,000 amidst growing buying pressure reflects strong macro momentum. Should this trend continue, BTC will shatter previous resistance levels and target higher benchmarks on its upward trajectory.

Bitcoin Weekly Chart. Source: Crypto Rover

BTC Price Prediction: Noting A Rise

Bitcoin is currently trading at $94,060, with its next major target set at $120,000. On a macro timeframe, BTC appears to be forming a parabolic curve, suggesting sustained bullish momentum. This technical formation aligns with the broader expectations for significant growth as 2025 approaches.

The weekly chart supports this outlook, showing BTC established its third base between Q2 and Q3 2024. This foundation is critical for propelling Bitcoin higher, potentially enabling it to breach its all-time high (ATH) of $108,384. A continuation of this bounce could drive Bitcoin past $120,000 in the coming months.

Bitcoin Price Analysis. Source:  TradingView

However, risks remain. If STHs choose to sell their holdings, Bitcoin could retrace to find support at $89,586. Losing this level might result in a further decline to $72,569, effectively invalidating the current bullish outlook. Market conditions in the short term will play a crucial role in determining Bitcoin’s trajectory.