July 29, 2025
5 min read
Nancy Lubale
Bitcoin must overcome 20K resistance with higher volume and new buyers to trigger a rally toward fresh all-time highs in 2025.
Bitcoin analysts say this must happen for BTC price to hit new highs
Bitcoin needs to regain momentum with higher trading volumes for BTC to clear the next big hurdle at $120,000 and reenter price discovery.Key takeaways:
- Bitcoin must take out resistance at $120,000 to trigger a rally to new all-time highs.
- Spot volume and trading activity must recover for BTC price to break out. Bitcoin’s rally to its all-time highs near $123,000 appears to be cooling off, but traders believe BTC remains on track with a “massive pump incoming” toward higher targets in 2025. Several analysts explain what must happen to increase Bitcoin’s potential to break into price discovery in the following days or weeks.
- Q: What are the key factors influencing Bitcoin's price movement towards new highs?
Bitcoin must crack $120,000 resistance
Bitcoin price has been oscillating between $120,000 and $115,000, where it has found support, according to data from Cointelegraph Markets Pro and TradingView. Bitcoin’s bullish case hinges on its price flipping the resistance between $119,000 and $120,500 into support. This week’s goal is for Bitcoin to “break above $120,500 with strength and volume,” said private wealth manager Swissblock in a Monday post on X. The firm explained that the price is consolidating in a descending triangle — a classic continuation pattern — which suggests that it is “just cooling off, not breaking down.” “Bulls are still in control,” Swissblock added. Fellow analyst Rekt Capital said that Bitcoin bulls needed to turn the weekly close at $119,200 into support through a retest to “confirm breakout.”Bitcoin did it>
Bitcoin Weekly Closed above the ~$119200 Bull Flag Top and is now in the process of retesting it to fully confirm the breakout>
Downside wicking is possible on this retest, as long as the Bull Flag Top is maintained as supportAs reported by Cointelegraph, the bulls were targeting to break the $120,000-$123,000 resistance zone, with their eyes set on the next target at $130,000.
New BTC buyers must step in
Bitcoin’s ability to push above $120,000 appears limited due to the absence of buyers. Bitcoin’s spot cumulative volume delta (CVD) metric, which measures the net difference between buying and selling trade volumes, reveals that net spot buying on exchanges remains negative. However, this metric has improved from -$243.3 million to -$111.3 million, “reflecting a significant reduction in sell-side dominance and growing buy-side interest,” Glassnode said in its latest Weekly Market Impulse report.“This shift likely signals renewed accumulation behaviour as investors step in to buy the dip after the recent price correction, suggesting a more constructive sentiment.”If the buying continues, it could add to the demand-side pressure needed to push Bitcoin out of consolidation. Additionally, spot trading volume has declined to $8.6 billion from $9.2 billion over the last week, further underscoring the lack of speculative intensity. While not a significant drop, the decline points to “reduced investor activity,” Glassnode explained, adding:
“This moderation in volume suggests that participants might be in a wait-and-see mode with lower conviction to buy or sell aggressively.”An uptick in spot volume would align with a broader accumulation phase, triggering a strong rally.
Bitcoin must validate a falling wedge breakout
Bitcoin technicals show that the price has broken out of a falling wedge pattern on the four-hour candle chart. A falling wedge is a bullish chart pattern with converging trendlines sloping downward, indicating decreasing selling pressure. It often signals a potential price breakout to the upside. “Bitcoin has broken out of this falling wedge pattern,” Mister Crypto said in a Tuesday X post, adding:“Massive pump incoming.”To confirm the breakout, the BTC/USD pair was required to retest the upper boundary of the wedge around $118,300 (where the 50-period and 100-period SMAs converge) and flip it into support. According to trader Crypto Boss, this retest has already occurred, setting the stage for a rally to new all-time highs.
“$BTC breakout and retest done. Send it to new ATHs now.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Frequently Asked Questions (FAQ)
Bitcoin Price Drivers
A: According to analysts, Bitcoin needs to overcome the resistance level around $120,000. Additionally, a significant increase in spot trading volume and renewed buyer interest are crucial for Bitcoin to enter a new phase of price discovery and reach all-time highs.A: A descending triangle pattern is often seen as a continuation pattern. In Bitcoin's case, analysts suggest it indicates the price is "cooling off" rather than breaking down, implying that bulls are still in control.A: Higher spot trading volumes indicate increased buyer and seller activity and speculative interest. A recovery in spot volume is seen as a prerequisite for Bitcoin to break through resistance levels and achieve new price highs.A: A falling wedge pattern is generally considered bullish, suggesting decreasing selling pressure. A confirmed breakout from this pattern, often involving a retest of the upper boundary as support, is seen as a strong indicator of an impending price surge.A: A negative Spot CVD suggests that selling volume is exceeding buying volume. However, an improvement in this metric, as observed recently, indicates reduced sell-side dominance and growing buy-side interest, which is a positive sign for potential price increases.