Bitcoin (BTC) to $120,000? Key Reasons Why

Bitcoin is circling just below the critical $112,000 mark once again, teasing its all-time high. Currently trading close to $109,900, Bitcoin has demonstrated remarkable tenacity and upward momentum after a successful recovery from the $105,000 support zone. Technically, Bitcoin is still in a strong upward trend. While remaining well above the 100-day ($97,901) and 200-day ($92,302) moving averages, the price has continuously honored the 50-day moving average, which is currently around $105,645.

As long as momentum does not reverse, this bullish structure indicates that Bitcoin is still in a strong position for another leg up. However, the data on social sentiment is even more revealing. Santiment claims that there have been several spikes in the period, Bitcoin's all-time high being mentioned on various social media platforms, especially on June 2, 4, 5 and 9. It is interesting to note that each of these spikes was followed by brief price corrections, demonstrating how crowd greed frequently heralds temporary peaks.

The good news is that these spikes have not yet reached the absolute top levels that have been historically recorded. The amount of conversation surrounding $ATH is high right now but by no means extreme. This suggests that the crowd has not yet reached complete euphoria and that there is still psychological space for Bitcoin to rise, perhaps surpassing its all-time high of $112,000. A favorable atmosphere for additional price growth is produced by this delicate fusion of technical strength and restrained social sentiment.

The next attempt at the $ATH might have enough momentum to overcome resistance and send Bitcoin into price discovery mode, provided that it stays above the $105,000 support and social volume does not go crazy. To sum up, Bitcoin is at a turning point.

Thanks to technical momentum and a generally upbeat but reasonable crowd, sentiment it is trading very close to setting a new record. Bitcoin may be about to surpass its all-time high - not just reach it - if retail euphoria is kept in check.