Bitcoin is once again approaching the resistance level at $112,500, a price point that has halted previous rallies. This level is being tested for strength, and experts are analyzing further movement possibilities.
Testing Resistance Levels
Bitcoin continues to grapple with the $112,500 resistance level. This price point has held back several rallies in recent months. A close above this mark could bring the cryptocurrency back into the upper trading range that previously led to all-time highs. Analysts target new resistance zones at $116,933 and $123,288.
Market Awaiting Possible Reversal
If the rise stalls, traders are preparing for potential short setups. Analysts mention, "Rejecting $112,500 is good for shorts after confirmation," highlighting the importance of waiting for clear signals before taking action.
Momentum Signals Weakening
The Chande Momentum Oscillator (CMO), which tracks Bitcoin's long-term cycles, has slipped below 20. Historically, readings above 20 have marked bull markets, while readings below 20 coincide with periods of weakness. Analysts note, "August’s close just pushed it back below 20," with similar shifts in 2014, 2018, and 2022 being followed by deeper corrections or extended consolidations.
Currently, Bitcoin is trading at approximately $112,358 with a daily trading volume of about $42.7 billion. The market is at a turning point, and traders are watching whether Bitcoin can secure a breakout into the higher range or if rejection will send the price back towards deeper support.
