Bitcoin (BTC) has posted a new reversal signal that may end two weeks of price losses. This analysis looks into the current market developments.
Closing the Daily Candle Above Trend Line
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD closed above a downward trend line for the first time since August 13. Market participants are eager to see confirmation that the recent bull market correction is over.
Early clues such as a bullish divergence on the relative strength index (RSI) have accompanied a rebound from multiweek lows of $107,270. The entire retracement from August's all-time highs is now being tested on the daily chart.
Trader Opinions on Bitcoin's Future
Opinions among traders regarding Bitcoin's future remain divergent. Some analysts anticipate a test of $100,000 or lower. Pseudonymous trader and analyst Il Capo Of Crypto urged followers to 'get ready for impact,' suggesting further declines may be on the horizon. Key resistance levels for market participants are $112,000 and $114,000, as they play a crucial role in determining the market direction.
Overview of Key Resistance Levels
Traders are focusing on the $112,000 level as a target resistance area. There is a consensus that this area coincides with order book liquidity on exchanges. Some traders have noted that 'liquidations are building above $112-112.4K,' emphasizing the importance of watching price movements in this zone.
Closing above the downward trend line may signal a potential reversal for Bitcoin after a prolonged decline. However, traders remain cautious, paying attention to key resistance levels and potential liquidations.
