Bitcoin may end consolidation phase and break above $120k

The cryptocurrency market has been consolidating over the last few days, but could experience a breakout soon.

Bitcoin, the leading cryptocurrency by market cap, has been trading between the $115k-$120k region over the last two weeks.

However, BTC could be gearing up for a breakout that would allow it to hit a new all-time high soon.

BTC recovers above $118k as Fed keeps rate unchanged

Bitcoin has had a volatile 24 hours following the FOMC meeting on Wednesday.

Fed Chair Jerome Powell announced that the apex bank is keeping its benchmark interest rate unchanged. 

The decision marks a continuation of the Fed's "wait-and-see" strategy this year, as it monitors the impact of tariffs on inflation.

However, the major impact on Bitcoin’s price was Powell’s speech.

The Fed chair stated that there are several economic releases before the September FOMC meeting, including two months of data on employment and inflation.

Hence, there is no certainty of a rate cut in September. He added that,

This speech saw Bitcoin’s price tank to the $116k level within minutes, with altcoins also recording huge losses.

The dump also saw over $200 million in long positions liquidated within an hour. 

BTC recovers above $118k, targets breakout above $120k

The BTC/USD 4-hour chart is bearish as Bitcoin recovers above $118k.

The leading cryptocurrency has been consolidating over the past few weeks, but could be set for a breakout soon.

Currently, Bitcoin is forming a dynamic support around the $117k level that could allow it to break out and set a new all-time high in the process.

This structure coincides with prior supply zones in the $120,000–$121,600 range.

The technical indicators currently paint a mixed picture as BTC is still consolidating.

The Parabolic SAR dots remain above the candles, hinting at potential trend weakness.

In addition to that, Bollinger Bands have tightened between $117,317 and $119,393, suggesting extreme volatility ahead. 

BTC is currently caught between the 20 EMA at $118,150 and the 100 EMA at $117,159, with neither the bulls nor bears in control of the market.

However, the MACD is not fluctuating much, and the RSI of 53 shows that buying pressure might resume soon. 

A mini breakout above the $118,700 level could see BTC test the $120,500 resistance point over the next few hours.

An extended rally would allow it to set a new all-time high price above $124k. 

However, a dip below the $117k support could see BTC tumble back to $114,600 or even test levels around $110,000.