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Wall Breaking? Bitcoin Faces Key Test Near $126K Trendline

Bitcoin price chart

Bitcoin is buying and selling close to $121,600 after reaching a brand new all-time high above $126,000 earlier this week. The asset has slowed and is now shifting sideways just under a serious diagonal resistance that has capped the worth for a number of months. Analysts are watching to see whether or not Bitcoin can break by or if will probably be rejected as soon as once more.

Meanwhile, the market is holding close to a key degree whereas open curiosity stays high within the futures market.

Bitcoin Struggles Near Long-Term Resistance

Bitcoin is dealing with resistance at a trendline that has held agency since earlier cycle tops. The newest weekly candle exhibits one other rejection close to $126,000, adopted by a pullback of round 5.5%. Earlier this yr, comparable rejections led to drops of almost 10% and near 30%.

The distinction this time is the scale of the pullbacks. Each rejection has been smaller than the final. Rekt Capital pointed out that “this trendline appears to be a weakening level of rejection,” suggesting sellers could also be shedding power at this degree.

Bitcoin price chart
Source: Rekt Capital/X

On the decrease timeframes, Bitcoin is holding simply above $121,000. This zone is marked by a earlier help degree and contours up with a Fibonacci retracement close to $119,550. Daan Crypto Trades famous that that is the world to observe.

The asset is at present consolidating in a decent vary. Volume has slowed, which regularly occurs earlier than a bigger transfer. The development stays bullish total. A confirmed greater low would help one other leg greater, particularly if resistance breaks.

Bearish Scenario Still in Play

While short-term sentiment stays constructive, some market individuals are nonetheless cautious. Analyst Ali Martinez shared a state of affairs the place Bitcoin will get rejected at $124,000 and begins a correction towards $96,000. If that degree fails, the following main help is round $70,000.

Bitcoin price chart
Source: Ali Martinez/X

The projected path exhibits a gradual restoration starting in late 2026, with Bitcoin climbing again towards $90,000. This state of affairs displays a broader retracement, not a development reversal, and suggests long-term construction might nonetheless stay intact.

Futures Market Remains Heated

Data from Glassnode shows that futures open curiosity continues to be elevated. This signifies that many merchants are positioned on each the lengthy and quick sides. Sharp strikes in both path have triggered liquidations. Glassnode mentioned the market is present process “a leverage reset” as volatility flushes out extra positions.

With Bitcoin sitting just under resistance and leverage nonetheless high, merchants are watching carefully. A transfer above the present vary might open the way in which towards $130,000. If resistance holds, one other pullback might lengthen the present consolidation.

The put up Wall Breaking? Bitcoin Faces Key Test Near $126K Trendline appeared first on CryptoPotato.

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