Bitcoin (BTC) is gaining renewed bullish momentum as traders eye a potential test of the $120,000 level following a decisive breakout above key resistance.

The move comes amid weakening gold prices and rising expectations of a liquidity boost ahead of this week’s Federal Reserve meeting.

Bitcoin Price Strengthens After Breaking Key Resistance

Bitcoin is currently trading around $115,565, up 1.64% over the past 24 hours, according to Brave New Coin data. The flagship cryptocurrency remains below its all-time high of $126,198 recorded earlier this month, but continues to show strong signs of upward continuation.

Bitcoin races toward the $120K mark as bullish momentum accelerates. Source: @Micro2Macr0 vi X

Market analyst @Micro2Macr0, a self-described macro investor, projected that Bitcoin could “test $120,000 by the end of the day tomorrow,” citing a bullish breakout above a descending trendline on the BTC/USD daily chart. The chart highlights momentum toward $118,884 and $120,000, supported by rising trading volume and renewed investor participation. “At this pace, Bitcoin is probably testing $120,000 by the end of the day tomorrow,” Micro2Macro wrote on X.

The setup reflects a similar ascending structure seen during the 2021 bull market, when Bitcoin surged over 300% within a year. Analysts note that maintaining support between $110,000–$112,000 remains critical for sustaining the current uptrend.

Gold Pullback Highlights Capital Rotation Toward Bitcoin

Investor Ash Crypto underscored the growing divergence between Bitcoin and gold performance, noting that “money rotation has finally started.” Over the past week, Bitcoin has gained 6.7%, while gold has dropped 6.86%, suggesting a shift in capital from traditional safe-haven assets to higher-risk alternatives like Bitcoin. “Gold is dumping, Bitcoin is pumping,” Ash Crypto said, forecasting a potential $150K–$180K target for Bitcoin in Q4 2025.

Gold tumbles while Bitcoin surges 6.7%—money rotation signals a potential $150K–$180K BTC in Q4. Source: @Ashcryptoreal via X

Data support this trend. A 2023 National Bureau of Economic Research study found that during periods of macroeconomic uncertainty, investors increasingly allocate capital to cryptocurrencies. Analysts attribute part of the latest inflows to growing institutional exposure through BlackRock’s Bitcoin ETF, the Fidelity Bitcoin ETF, and the Grayscale Bitcoin Trust (GBTC)—all of which have contributed to expanding Bitcoin’s market cap and overall liquidity.

BTC Bull Market “Far From Over” After $112K Breakout

Market analyst Michaël van de Poppe (@CryptoMichNL) described Bitcoin’s breakout above $112,000 as a critical moment for confirming the continuation of the bull market. “Once that broke, it’s clear this bull market is far from over and that we’re about to have way more upside to come in here,” van de Poppe said on X.

Bitcoin breaks $112K resistance, signaling more upside ahead with potential dips before a new all-time high in November. Source: @CryptoMichNL via X

Van de Poppe expects short-term volatility ahead of the October 28–29 FOMC meeting, which could cause temporary pullbacks before a stronger continuation into November. Historically, Bitcoin has dipped 5–10% before major rate announcements but often rebounds once rate cuts are confirmed.

Analysts at Binance Research and BeInCrypto share similar views, noting that a 98% probability of a Federal Reserve rate reduction could drive risk-on sentiment and push BTC prices toward new highs as liquidity conditions improve.

Looking Ahead: Liquidity, ETFs, and Institutional Demand Key to Q4

Heading into November, analysts expect liquidity injections, rate adjustments, and steady ETF inflows to define Bitcoin’s path. Institutional demand from BlackRock, Fidelity, and ProShares ETFs, along with long-term corporate holders like MicroStrategy, continues to underpin bullish fundamentals.

Bitcoin (BTC) was trading at around $115,565, up 1.64% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin

If macro conditions align, Bitcoin could retest its $126K–$130K zone before year-end, with some analysts projecting an extension toward $150K as 2025 approaches.