Bitcoin Price Prediction: BTC Likely Headed for A Breakout to $130K

Highlights:

• Bitcoin is trending towards the $123,495 resistance
• Rally through the $123,495 resistance could send Bitcoin to $130k
• An improved macro environment could be the trigger for a breach of resistance

Bitcoin (BTC) has changed a little in the last 24 hours, continuing a week of sluggish price action. Over the previous 24 hours, Bitcoin dropped by a negligible 0.48% to trade at $116,582.90. However, the volumes give a clearer picture of Bitcoin’s potential direction in the short term. While the price has dropped slightly in the day, volumes have fallen sharply by 34.49% to stand at $48.22 billion. 

The drop in Bitcoin trading volumes is an indicator that the average holder is not trading their coins and is likely moving them to cold storage. This means investors are taking a more long-term view of Bitcoin.

Then there is the fact that as the amount of Bitcoin available for trading drops, the demand will keep outpacing supply. The result is that Bitcoin could soon experience a sharp price rally that could send it back to its recent all-time highs, and potentially make new highs. Besides the volumes, several other factors could play a role in sending Bitcoin higher in the short to medium term. 

Recent US Rate Cut Could Send BTC Higher

One factor that could send Bitcoin higher is the recently implemented interest rate cut in the US. The Federal Reserve recently implemented a 25-basis-point rate cut. While it is lower than what the markets and President Trump were calling for, it has ignited bullish sentiment in risk-on assets. The stock market indices are pushing higher and are trading at all-time highs.

This is a strong indicator that, going towards the end of the year, there could be a strong surge in liquidity into the markets. Bitcoin, being historically one of the best performers in times of cheaper liquidity, could attract significant attention going forward. With the recent bounce off support invalidating the possibility of a drop below $100k, Bitcoin is likely headed to new highs in the short to medium term.

Analysts Point to Possible Bullish Breakout for Bitcoin

Along with the interest rates supporting an upside move for Bitcoin, analysts are also offering bullish predictions for the number one cryptocurrency. For context, several analysts are in consensus that from a technical analysis perspective, Bitcoin is trading consolidating in a symmetrical pattern. This pattern historically precedes breakouts, and analysts agree that it could lead to a breakout that could send Bitcoin to new all-time highs.

The Global M2 smashes new Highs while #Bitcoin continues consolidating. It's a matter of time for 📷$BTC to catch up and smash through the $150,000 range. Be ready! 🤝 pic.twitter.com/kgwPPiSMI3

— Layla Smith (@LaylaSmith71) September 19, 2025

Considering the influence analysts have in the markets, such projections could trigger FOMO buying from investors looking to be in when the move happens. This, against a backdrop of Bitcoin’s low supply, could send the price to new highs soon. 

Macro Environment Favors More Upside for Bitcoin

The institutional demand for Bitcoin is also getting stronger, further adding to the bullish sentiment building up around Bitcoin. This is evident in the fact that Bitcoin ETFs continue to record strong daily inflows despite the lack of major price action in BTC’s price. At the same time, government policy is increasingly favorable for Bitcoin.

For instance, major cryptocurrency industry leaders recently had a roundtable in Washington. The roundtable touched on the formulation of a Bitcoin strategic reserve act. Such a law would pave the way for the US government to acquire 1 million Bitcoin over 5 years for its reserves. This is a big deal due to Bitcoin’s low supply, and could send the price higher, both out of speculation and actual demand from the government.

Proud to take part in today’s roundtable on the #BitcoinAct, which I cosponsored to establish a Strategic Bitcoin Reserve and ensure transparency in America’s holdings.

This bill secures up to one million Bitcoin for the United States, strengthens the dollar, and keeps our… pic.twitter.com/ZfvRdVTxhu

— Congressman Pat Harrigan (@RepPatHarrigan) September 16, 2025

Technical Analysis – BTC Trending Towards Critical Support

Bitcoin has been gaining minor gains since September 1. If this trend continues, the key level to watch would be the multi-week resistance at $123,495. If bulls gain enough momentum and push Bitcoin through the $123,495 resistance, then a rally to $130k, or higher, could follow.

On the other hand, if bulls fail, the key level to watch would be the $108,030 support. Of these two scenarios, the odds favor a rally through the $123,495 resistance. That’s because the macro environment favors bulls, and institutional inflows into BTC remain strong.