Bitcoin tests $120K as traders eye breakout to all-time highs

• Bitcoin surged near $120,000 for the first time since mid-August, rising 1% in a day.
• Analysts highlighted $118,000 as a pivotal breakout level for further gains and potential record highs.

On October 2, 2025, Bitcoin's price reached $119,188, marking an eight-week high as it approached the $120,000 threshold. The cryptocurrency's 1% daily climb has sparked optimism among traders, fueling speculation about the possibility of new all-time highs. This upward movement followed a six-week corrective phase, indicating a shift in market momentum.

Analysts underscored the importance of Bitcoin's breakout above $118,000. Popular trader Jelle described holding this level as critical for the cryptocurrency to advance toward record territory. Meanwhile, renowned analyst Rekt Capital observed that a close above $117,300 could establish it as a new support zone. They suggested that any brief pullbacks might simply test this level, reaffirming the bullish sentiment.

Market outlook has turned positive as Bitcoin recovers from its recent downtrend. The six-week correction had dampened activity, but the recent breakout has reinvigorated confidence among market participants. Short-term technical indicators, including the Relative Strength Index (RSI), are now in "overbought" territory. Despite this, earlier bullish divergences have kept expectations of new all-time highs intact.

As of October 2, 2025, 15:11 UTC, Bitcoin (BTC) is trading at $119,188, recording a 1.68% increase over the past 24 hours, according to CoinMarketCap. Its 24-hour trading volume has risen by 4.28%, signaling increased market activity.