On August 11, 2025, BTC/USD (Bitcoin/US Dollar) clearly broke above the key $120,000 level on the 1-hour chart. After several days of range-bound trading, a sharp rally with increased volume occurred in the latter half of August 10. This surge was likely driven by renewed risk-on sentiment in the U.S. market and stabilization in inflation-related indicators, boosting demand for Bitcoin.
Additionally, the global cryptocurrency market capitalization has been trending upward, with major altcoins also rising. Bitcoin remains the dominant base currency in the cryptocurrency market, and its price action serves as a key barometer for overall market sentiment (Bitcoin - Wikipedia).
On the 1-hour chart, the price is trading above both the short-term moving average (blue 50MA) and the long-term moving average (red 200MA), indicating a clear upward trend. Notably, the 50MA is approaching a “golden cross” above the 200MA, which is a classic bullish signal (Moving Average - Wikipedia).
Historically, golden crosses often occur at the start of multi-hour to multi-day uptrends, making this pattern favorable for short-term buy-on-dip strategies.
The MACD line has surged well above the signal line, with the histogram expanding sharply. This indicates strong short-term buying interest. When a price breakout coincides with a bullish MACD crossover, as in this case, the uptrend is often sustained by strong momentum (MACD - Wikipedia).
The ADX is above the 30 level, confirming a clear trending market (ADX - Technical Indicators List). Once this threshold is exceeded, trends tend to persist temporarily, providing a solid basis for trend-following entries.
The breakout above $120,000 was accompanied by a sharp increase in volume, showing that market participants recognized this level as a key threshold. A “volume-backed breakout” lends credibility to subsequent price moves and reduces the likelihood of a reversal.
| Level | Price | Significance / Basis |
|---|---|---|
| Short-term Resistance | $122,000 | A psychological level, likely to act as a short-term profit-taking zone |
| Next Target | $125,000 | A round number near previous highs |
| Short-term Support | $118,000 | Recent pre-breakout high, potential dip-buy zone |
| Medium-term Support | $116,000 | Key support area overlapping with the 200MA |
Short-term traders may consider buying on dips near $118,000 as their primary strategy. A break above $122,000 could open the path to the next target at $125,000. However, given the tendency for volatility to rise after sharp rallies, defining clear stop-loss levels is essential.
For medium-term investors, the $116,000 level around the 200MA may serve as a strategic buying zone. This area also coincides with a volume concentration zone, increasing the likelihood of a strong rebound if the price retraces.
The breakout above $120,000 suggests that BTC/USD may have entered the core phase of a bullish market. Momentum indicators, moving averages, and the ADX all support the upward trend, making the outlook favorable for both short- and medium-term buying. Nonetheless, after sharp gains, there is always a risk of short-term profit-taking pullbacks, so position management remains crucial.
The $118,000–$116,000 zone is a key buy-on-dip area, and as long as the price stays above it, the bullish scenario is likely to remain intact.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and make decisions based on your own judgment.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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