Bitcoin Price Prediction: Why BTC Could Rally to $123K Soon

Highlights:

• Bitcoin has bounced off a critical support zone between $86,253 – 78,883
• A strong rally off this support would put $123k in focus
• Growing liquidity in the markets and institutional adoption could trigger a rally 

Bitcoin (BTC) is in the green today, continuing the bullish sentiment that it has built up through the weekend. At the time of going to press, Bitcoin was trading at $92,603.50, up by 1.35%. Bitcoin trading volumes are also going up alongside the price. They have shot up by 42.5% to stand at $34.16 billion. Such a surge in trading volumes suggests a growing interest in Bitcoin among investors in the new year. The rising interest in Bitcoin comes as a surprise, given that the geopolitical environment has become murky in the new year. 

Bitcoin Holding Strong Despite US Attack On Venezuela

In the past, Bitcoin has faced corrections whenever there are geopolitical flare-ups. To such an extent that Bitcoin appeared to be forming an inverse relationship with Gold. However, this is changing. Over the weekend, the US pulled off a surprise attack on Venezuela and arrested the country’s president. This has triggered a surge in risk-off assets in early Monday trading. 

However, Bitcoin has gone up as well. This is an indicator that, beyond the geopolitical environment, the underlying demand for Bitcoin remains strong. The institutional adoption that characterised Bitcoin for the better part of 2025 is likely to become evident. With more institutions now taking a strategic shift towards Bitcoin and cryptocurrencies in general, the value of Bitcoin is expected to increase significantly in the future.

BTC Price Could Rally to $123K as Institutional Interest Rises

The institutional shift towards Bitcoin is also evident in the fact that major accounting firms are taking an interest in Bitcoin. One of these institutions is PriceWaterHouseCoopers (PWC). PWC has announced that it is taking a strategic shift towards cryptocurrencies. The firm noted that due to rising demand, it would start offering accounting and audit consultancy services to companies in the digital assets space.

PWC’s move is an indicator that, as regulations become clearer, institutional interest in Bitcoin will only grow stronger. This demand could potentially drive Bitcoin to new highs in the foreseeable future.

End of QT Starting to Impact Bitcoin Positively

Bitcoin is also expected to benefit significantly from the Federal Reserve’s moves at the end of 2025. In the last quarter of 2025, the Fed made two surprise interest rate cuts. At the same time, they announced the official end of Quantitative Tightening and actively started pumping liquidity into the markets. The impact of this could be huge for Bitcoin. Part of the reason the 2024/25 cryptocurrency cycle did not unfold as in the past is due to liquidity issues. 

The 4-year Bitcoin cycle coincided with a high-interest-rate environment. Now that this is over, and liquidity is set to grow again in the markets, money could flow strongly into Bitcoin. The result is that Bitcoin could enter a new rally into 2026, one that could push it to prices as high as $200k. The fact that Bitcoin is performing well, even as geopolitical tensions rise, is a strong indication of the impact rising liquidity is having.

Technical Analysis – Bitcoin Is Holding At Critical Support Level

After a correction since last October, Bitcoin has bounced off the $86,253 – $78,883 support zone. If the support holds and there is a rebound, BTC could rally back to $123K, which is now resistance. A rally through this resistance could send Bitcoin to new highs. 

On the other hand, if Bitcoin crashes through the $86,253-$78,883 support, a correction to $54,587 could follow. Of these scenarios, a rally to $123,651 is more likely. That’s because of the ongoing liquidity injection by the Fed, as well as the increasing institutional demand for Bitcoin.