Title: Bitcoin Tests $118K–$122K Resistance Zone: Breakout or Setback?
Original Author: Skerdian Meta
Source: FXLeaders
Date: September 13, 2025
URL: https://www.fxleaders.com/news/2025/09/13/bitcoin-battles-118k-122k-resistance-will-btc-break-through/
Bitcoin (BTC) is once again in the spotlight as it approaches a major resistance area between $118,000 and $122,000. After a month of sideways action within a gradually tightening range, BTC is attempting to break out. Traders are cautiously optimistic, but the market remains cautious as Bitcoin tests these levels for the second time in September 2025.
This article dives into the key technical and fundamental factors currently influencing Bitcoin’s price, offering insights into whether the largest cryptocurrency by market cap has the strength to break and hold above resistance and begin a new bullish phase.
Current Market Overview
As of mid-September 2025:
– Bitcoin is trading between $118,000 and $122,000.
– The broader trend for 2025 remains bullish, with BTC posting significant gains earlier in the year.
– Volatility had compressed over the past four weeks, forming a wedge pattern.
– Market sentiment is transitioning from uncertain to cautiously optimistic.
Technical Analysis of Bitcoin Price Levels
Over the past month, BTC has experienced consolidation between $112,000 support and $122,000 resistance. This tight range is indicative of a classic wedge formation, where the price trades within converging trendlines pointing to decreasing volatility. Historically, such wedge formations tend to precede strong breakouts.
Key technical indicators and structures:
– Resistance Zone: $118K to $122K is critical. This was the rejection point in early September and serves as a psychological barrier for traders.
– Support Zone: $111K to $113K has held firm through multiple tests in August and early September.
– Wedge Pattern: The pattern began forming in August and has recently seen a breakout attempt to the upside.
– Moving Averages: The 50-day and 100-day moving averages are trending upward and converging just under $115K, offering dynamic support.
– RSI (Relative Strength Index): The daily RSI has moved above 60, suggesting increased bullish momentum but not yet overbought.
Bitcoin’s History with Wedge Breakouts
Bitcoin has a well-documented reputation for extended consolidation within wedge-like patterns, followed by decisive breakdowns or breakouts. The current scenario fits this behavior:
– In late 2023, Bitcoin broke out from a descending wedge around $28,000, leading to a two-month rally toward $40,000.
– In mid-2024, an ascending triangle breakout above $64,000 marked the beginning of BTC’s rise to the $100,000 level.
Given this pattern, the current consolidation above $110K invites speculation about another potential breakout, especially since it aligns with increasing institutional involvement and macroeconomic stability.
Fundamental Factors Supporting the Current BTC Rally
Several macro-level and internal crypto market dynamics are offering tailwinds to this rally:
1. Institutional Adoption
– Major financial institutions, including BlackRock and Fidelity, have expanded Bitcoin ETF offerings since early 2025.
– High-profile companies like PayPal and Stripe have integrated on-chain Bitcoin payments into their platforms.
2. Regulatory Clarity
– The U.S. government finally passed comprehensive crypto legislation in July 2025, treating Bitcoin as a legal digital commodity.
– Clarity in regulation has reduced investor uncertainty and attracted new institutional players.
3. Bitcoin ETFs and Spot Demand
– Spot Bitcoin ETFs have recorded increasing inflows, particularly since the ETF tax structures were revised in Q2 2025.
– This has driven demand in the open market as ETF providers continuously purchase BTC to back issued shares.
4. Halving Cycle Momentum
– The April
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