Bitcoin Breaks Two-Week Downtrend, Eyes $112,000 Resistance
Bitcoin broke above a two-week downtrend on the daily chart, closing above the trendline for the first time since mid-August. The breakout signals a potential end to the short-term price decline, supported by a bullish RSI divergence from the August low near $107,270. Traders now eye the key resistance zone at $112,000, where liquidation clusters on exchange order books are accumulating. Some analysts, including Rekt Capital, note that a confirmed reversal requires a daily close above the trendline or a successful retest. However, bearish voices like Il Capo of Crypto warn of a renewed test of $100,000. Additional resistance may arise around $114,000, according to CoinGlass liquidation heatmaps. Market participants await upcoming US macroeconomic data that could influence Bitcoin’s next move.
Bullish
The break above a sustained two-week downtrend is a classic bullish signal in technical analysis. Historically, similar daily-chart trendline breakouts—confirmed by closing above the resistance and retesting the line—have led to sustained rallies. The bullish RSI divergence from the August lows further strengthens the reversal thesis. Short-term, the key $112,000 level represents the next barrier; a successful clear above it could accelerate buying momentum and trigger short-squeeze liquidations. In the long term, confirmation of trend reversal would restore confidence among investors and likely attract additional capital flows into Bitcoin. While macro data and bearish calls may inject volatility, the prevailing technical setup favors upside continuation.