Analyst’s Full Market Breakdown Shows Why Bitcoin Price Is Headed For $120,000
Bitcoin's current downtrend is part of an institutional accumulation phase, suggesting a potential rebound to $120,000. Analyst 'Mr. Wall Street' highlights controlled price consolidation between $107,000 and $123,000, signaling institutional control and no structural weaknesses. Federal Reserve liquidity injections may fuel Bitcoin's upward movement, recalling previous bull runs. The narrative of retail investors shifting to gold is seen as a distraction while institutions accumulate Bitcoin. The analyst anticipates an imminent end to this consolidation phase and an eventual surge above $120,000.
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Bitcoin's Potential Return to $120,000
Bitcoin, although currently experiencing a downward trend, is fundamentally poised to return to $120,000, according to an analysis by Mr. Wall Street shared on X. The recent price stagnation and sudden drops are suggested to be part of a larger accumulation phase led by institutional investors. He emphasized that Bitcoin's eventual climb above $120,000 is inevitable, supported by a robust structural foundation.
Institutional Accumulation and Controlled Price Range
Bitcoin has been trading within a controlled 120-day range, oscillating between $107,000 and $123,000. This consolidation range appears to be managed by institutions aiming to push out weaker retail investors. According to Mr. Wall Street, Bitcoin's structure remains fundamentally bullish, with repeated failed attempts to break above $120,000 or drop below $107,000, signaling that institutions are controlling liquidity in this range.
Events like the Binance sell-off and the impact of Trump's tariff war with China led to crashes, yet institutional bids consistently supported the $107,000 zone, even when prices briefly fell to $101,000. The imbalance to the upside suggests Bitcoin is likely to return to values between $120,000 and $123,000, aligning with the Value Area High.
Federal Reserve Policies and Bitcoin's Surge
Mr. Wall Street linked Bitcoin’s potential rise to changes in Federal Reserve policies. Despite stating the end of quantitative tightening, the Fed has injected billions into the financial system through repo operations and mortgage-backed securities purchases, including a notable instance of $50.35 billion being injected on a single Friday.
This increased liquidity, he argued, will flow into risk assets, including Bitcoin, similar to the 2019 monetary response that preceded the crypto bull run of 2020-2021. While he warned of a possible fabricated crash that may precede this wave, it will only fortify Bitcoin’s position for another surge past $120,000 and possibly beyond.
Gold and Bitcoin: The Store of Value Debate
The analyst shed light on a psychological trend in the current market cycle. Many retail investors are being drawn toward gold, influenced by stagflation narratives and economic fear. However, institutions are stealthily accumulating Bitcoin at discounted levels, creating a diversion between public perception and institutional action.
He argued, “The same logic driving individuals to gold should instead steer them toward Bitcoin.” This ongoing gold hype acts as a distraction, allowing institutions to quietly establish a solid position in Bitcoin. Once retail investors exit the crypto market entirely, an upward move redefining Bitcoin's price is likely.
Conclusion: Bitcoin's Breakout Is Imminent
Mr. Wall Street concluded by expressing confidence that the current sideways phase is close to an end. The next aggressive movement in Bitcoin’s trajectory could push the cryptocurrency back above $120,000. At the time of his analysis, Bitcoin was trading at $104,200, emphasizing that the breakout is merely a matter of time.