BTC/USD Technical Analysis (1-Hour Chart): Approaching $120K — Can Bitcoin Break Through?

Market Overview and Current Price Action

As of July 23, 2025, BTC/USD (Bitcoin/US Dollar) is trading around $119,600, with bulls testing the psychologically important resistance at $120,000. Analyzing the past week's 1-hour chart reveals a clear uptrend, with higher highs being formed and pullbacks being bought aggressively.

This rally is backed by solid momentum, making it a crucial moment for traders to evaluate potential entry points and profit-taking strategies. In the following sections, we analyze moving averages, MACD, ADX, volume, and support/resistance levels from a technical analysis perspective.

Chart provided by cTrader platform

Moving Average Analysis: Indications of a Stable Uptrend

BTC/USD is currently trading above both the 50-period (blue) and 200-period (red) moving averages. These moving averages, which serve as visual indicators of medium- and long-term trends, are showing a bullish bias — the 50MA is steeply rising, while the 200MA has started to turn upward.

This setup resembles a "Golden Cross," which often signals the start of a sustained uptrend. When the moving averages slope upward steadily as they do now, it typically validates a strategy of buying on dips. For more information, refer to the moving average overview.

MACD Behavior: Strong Bullish Momentum

The MACD line (yellow) remains above the signal line (red), and the histogram continues to print positive bars. This is a strong sign of sustained momentum and suggests that the recent upward move is not a short-lived spike but technically supported.

Moreover, the MACD itself is trending higher, indicating continuous buy pressure. For traders, MACD crossovers and histogram expansion can serve as helpful tools for timing entries or exits in the market.

ADX: Gauging Trend Strength

The Average Directional Index (ADX) is currently nearing the 60 level, which indicates an extremely strong trend. Typically, an ADX reading above 25 signals a trending market, above 40 implies a strong trend, and above 60 may indicate overextension — though momentum remains intact for now.

ADX measures trend strength rather than direction. When coupled with an upward price trend, a reading near 60 confirms a powerful bullish phase in play.

Volume and Price Action: Confirming the Breakout

Trading volume is steadily increasing alongside price action, which enhances the credibility of the ongoing breakout. Notably, the minor pullback near $118,000 was met with slightly increased volume on the rebound, confirming buyer presence.

When volume rises along with price, it suggests demand-based support, increasing the likelihood of trend continuation. Should volume spike during a $120,000 breakout, it would likely act as a confirmation signal for further upside.

Support and Resistance Levels

Conclusion: Key Takeaways for Bitcoin Short-Term Strategy

The 1-hour BTC/USD chart shows a well-formed uptrend supported by strong momentum. The potential breakout above the $120,000 resistance appears increasingly likely, with both MACD and ADX indicators reinforcing the bullish case.

However, traders should stay cautious of potential profit-taking near the psychological $120K level. Employing a "buy the dip" strategy between $119,000 and $117,500 could be advantageous, as multiple technical indicators align in this support zone.

Watching for volume-backed breakouts and MACD crossovers can help traders identify continuation signals while managing risk effectively. This balanced approach can be useful for both short-term scalping and medium-term swing strategies.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before making any financial decisions.

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