Market momentum builds after rebound from strong support zone
Bitcoin surged past the $112,000 mark, signaling renewed strength in the world’s leading cryptocurrency after weeks of trading within a descending channel. The move comes as traders look for confirmation of a broader shift in market sentiment, with attention now turning to higher resistance zones.
Breakout from descending channel
The chart reveals that Bitcoin had been trading in a downward channel since late July, creating consistent lower highs and lower lows. This week, price action decisively rebounded from a major demand zone between $107,000 and $110,000, where buying pressure intensified.
“Breaking above $112K is a constructive sign that buyers are regaining control,” noted BITX market strategist. “If momentum continues, the next critical test lies near $114K to $116K, where the upper channel boundary is positioned.”
Above current levels, the chart highlights a significant supply zone between $122,000 and $124,000. Analysts suggest this range will likely attract heavy selling if Bitcoin approaches it in the near term.
“The $122K–$124K band represents a major ceiling for now,” explained BITX technical analyst. “Clearing that area would confirm a stronger bullish reversal, but rejection could pull prices back toward the $110K region.”
The breakout occurred alongside a noticeable uptick in trading volume, a factor often used to validate price moves. Traders see this as an encouraging development, indicating that the push above $112K was supported by meaningful market participation.
Outlook
While risks remain, the latest price action suggests Bitcoin is attempting to reverse its short-term downtrend. Holding above $112K will be key to sustaining upward momentum, with eyes firmly set on whether bulls can challenge the $122K–$124K resistance zone in the coming sessions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.