Bitcoin Price Prediction: Key Resistance Breakout + FOMO Set Stage for $140K

Bitcoin (BTC) has fully shaken off the latest wave of negative momentum and made a new all-time high yesterday after surpassing the $125,000 mark.

The top crypto has been going up for 6 days in a row and has closed the past 9 out of 12 sessions with gains, underscoring the strong wave of positive momentum that cryptos as a whole are experiencing.

The U.S. government’s two-week shutdown has also favored digital assets as the U.S. dollar continues to plummet. The Dollar Index has accumulated a 10.3% retreat since the year started. The benchmark started to plummet below 100 since April — the first time this happened since February 2022.

Bitcoin ETFs Get Massive Inflows

In the past 6 days, $630 million worth of BTC short positions have been liquidated as a result of this upward move.

Bitcoin ETF Inflows – Source: Farside Investors

On Friday alone, Bitcoin-linked exchange-traded funds (ETFs) brought in nearly $1 billion in net inflows, with BlackRock’s IBIT flagship spot vehicle leading the scoreboard, taking in roughly 80% of that total.

Meanwhile, in the past 5 days, these passively managed funds have received an eye-popping total of $3.2 billion from investors.

Macroeconomic conditions have clearly improved, and the market is starting to acknowledge that. The Federal Reserve is expected to implement a second rate cut during this month’s FOMC meeting, while the Fear and Greed Index has recovered from 34 to 60 in just a couple of weeks.

This justifies a bullish outlook for crypto, confirmed by a key resistance breakout that could set the stage for a big move toward $140,000 at least.

Bullish Breakout and Past Performance Trends Favor Push to $140K

We have been tracking Bitcoin’s latest performance and drafted a prediction of $140,000 for the top crypto based on how it has performed after brief periods of consolidation lately.

BTC/USD (Bitstamp) Daily Chart – Source: TradingView

The token broke past the $125K resistance like butter yesterday with some decent trading volumes. As a result, the Relative Strength Index (RSI) has now climbed to overbought territory. Even though this increases the risk of a pullback, it is still way too early to call a short-term top.

The price would have to decline sharply first, and then late buyers will likely enter the scene to scoop up BTC during the dip and ultimately push it to higher ground.

The last few rallies have resulted in a 25% push from BTC’s bottom after a pullback. By using this past performance as a reference, we get a short-term target of $140K. Such a move could be preceded by a mild decline upon hitting $130,000. At that point, late buyers should come in to do their job.

The $122,000 area has now been turned into the key support to watch if such a pullback occurs.

On Wednesday, the market will get the latest FOMC minutes. These are typically scrutinized by participants to see how dovish or hawkish the Fed’s governors are at the time.

At a point when interest rate cuts are back on the table, any comments hinting at cuts of a higher magnitude than 25 basis points could result in a big move upward across cryptos.