Bitcoin Bulls In Control: $120,000 Test Could Trigger Run Toward ATH

Bitcoin (BTC) prices are currently hovering near $118,000 after a modest price recovery in the last week resulted in a 4.17% price gain. With a new week ahead, a top market analyst with X username KillaXBT shares some technical insights on the present Bitcoin market structure and also discusses potential price developments.

Monthly Open Flip Boosts Bitcoin Outlook, But Beware Liquidity Hunts – Analyst

In an X post on August 9, KillaXBT gives a weekly analysis report of the Bitcoin price’s movement for the first week in August while also sharing future projections. In their observations, the market expert notes that Bitcoin started the month on a strong technical footing, flipping the monthly open at $115,752 into support, a move traders often interpret as a bullish signal.

However, KillaXBT explains that Bitcoin historically tends to wick either up or down in a new month, forming one side of the monthly candle’s wick in a pattern sometimes referred to by traders as the “monthly open trap.” Therefore, the current setup has market watchers closely monitoring for either a sustained uptrend or a liquidity-driven retracement before continuation.

In terms of liquidity, the crypto analyst has also observed that significant 2-week BTC liquidations are building above the $120,000 mark. This zone is also aligned with the previous weekly open ($119,414), creating a high-probability target should bullish structure remain intact. At present, BTC is testing a lower-timeframe (LTF) downtrend line. KillaXBT explains that a confirmed break above this trendline could pave the way for a decisive move toward $120,000 and beyond, while traders remain wary of potential liquidity hunts that could briefly push price lower before resuming the uptrend.

Two main scenarios are now emerging for traders. First, BTC could maintain its bullish structure, continuing the climb toward the $120,000 liquidity pool and potentially targeting the $123,186 monthly high (ATH). This path aligns with the current technical structure, which shows no immediate signs of bearish continuation. Alternatively, Bitcoin could fail to break higher, instead forming a lower high and slipping back under $115,700. In such a case, the next major support lies in the $110,000–$112,000 range, marked by the monthly fair value gap (FVG) at $111,955.

Presently, KillaXBT believes scenario one appears more likely as the market is holding bullish momentum, and with absent clear bearish signals, the analyst expects BTC to attempt higher highs in the coming days. However, traders should also expect BTC could briefly dip early in the week, particularly Monday or Tuesday, to clear overleveraged long positions before rallying.

In rounding off, the market expert states a sustained pattern of higher highs and higher lows on intraday charts would further validate the bullish outlook, while a failure to hold these levels could quickly shift sentiment toward the bearish alternative.