Highlights:
- Bitcoin support at $90K critical for $120K market top, analysts predict.
- Corporate demand rises as Méliuz adds 274 BTC to its growing holdings.
- $105K resistance must break for Bitcoin to target $120K this cycle.
Bitcoin price may be preparing for a rally as several signs suggest that it could hit $120,000. If the key levels are maintained, the possibility of a major increase in value is very likely due to rising accumulation and market movements. With increasing demand from institutions and a better-organized market, prices approaching six figures are likely.
Support Levels Could Propel BTC Price to $120K
The recent analysis by Ali on charts suggested Bitcoin price could reach a local top of about $120,000. Analysts are looking at long-term market trends based on the Cumulative Value Days Destroyed (CVDD) model. The CVDD model examines the age of Bitcoin to identify market tops and bottoms.
The model predicted that Bitcoin price is currently in the accumulation phase. At such times, long-term investors tend to arrange their assets to take advantage of better prices ahead. The scenario depends on BTC price currently maintaining $90,000 as support. If the level holds, it becomes more likely that the price will move towards $120,000.
This market top has shown accuracy in the past and is an important signal for traders to track. Holding above the support line might prompt more buyers, leading BTC to its following major price target.
Short-Term Price Action and Key Levels to Watch
On shorter timeframes, DragonFly’s analysis highlighted two critical levels. The 4-hour chart showed immediate support at $101,500. If this level breaks, BTC price might fall to $98,000, as this is an area where buyers have shown repeated interest in the past.
On the upside, Bitcoin price faces significant resistance at $105,000. Continuing to clear this level of resistance may lead to immediate gains up to $109,000, corresponding with expected bullish performance. This area is important since it could lead to more liquidations if broken. This development could help Bitcoin reach its target of $120,000.
Crossing the $105,000 barrier is a big psychological step, and achieving it would show that the market is trending better. If adopted, this move should draw additional interest from buyers and hopefully boost the rally.
Corporate Bitcoin Accumulation Adds Bullish Pressure
Méliuz, a company listed on the Brazilian stock market, supports the positive outlook for Bitcoin. On May 15, it was approved by shareholders that Méliuz shall become a Bitcoin treasury company. With this move, Méliuz is the first Brazilian company on the stock exchange to use BTC as an official financial asset.
The firm reported that it purchased 274.52 BTC, with each coin costing an average of $103,604. Therefore, the company now holds 320.3 BTC valued at more than $33 million. Méliuz intends to improve its Bitcoin holdings by relying on cash, different corporate forms, and financial tools.
This development reflects a wider trend of companies buying Bitcoin. A number of companies, including Startegy and DayDayCook, have recently shared their plans for using Bitcoin in their treasury management. Such corporate purchases support Bitcoin’s increasing value over time by adding great buying pressure.
Long-Term Outlook: Path to $120K if Key Levels Hold
Corporations are increasingly acquiring and holding Bitcoin. Various companies across the globe hold BTC as a main component of their treasury reserves. Rising interest from institutions is creating a stable outlook for future price increases.
Bitcoin price can only reach $120,000 if it holds the support at $90,000 and breaks through the resistance at $105,000. These levels could determine who will win between bulls and bears. If someone breaks these boundaries, it could lead to a clear path to six-figure stock prices.
Bitcoin is forecast to rise strongly, as major funding levels are stable, industry growth is present, and technical indicators suggest an imminent market peak. For this reason, failing to maintain these levels could cause the market to pull back or stay in a narrow range for some time.
With better market conditions, reaching $120,000 for Bitcoin seems more likely. In the coming weeks, traders will focus on key levels as they follow any further action.