As the majority of assets in the cryptocurrency market began to turn the tide on their recent bearish streak, Bitcoin (BTC) has bounced sharply, holding a key weekly support level that could define its next major move and looking to test the $112,000 zone as a critical resistance.
Key Takeaways:
- Bitcoin rebounded strongly from a crucial support area near $102K-$103K
- Confirmed breakout above $112K could open the path to new ATH
- Market structure remains bullish on higher timeframes despite volatility
Bitcoin Holds Crucial Support as Bulls Regain Momentum
Indeed, following a turbulent week in the crypto market, Bitcoin’s latest bounce has injected new optimism into traders’ outlooks, as BTC has successfully defended a critical support region around $102,000, according to the analysis by crypto trading expert Michaël van de Poppe on November 6.
This suggests that the local correction phase may have reached exhaustion. As van de Poppe noted, the current structure points to a short-term recovery, commenting that there was a:
“Very good bounce of the markets yesterday. […] I assume we’ll start testing the $112K zone relatively soon and that’s the crucial resistance before a breakout to a new ATH”
On the weekly chart, Bitcoin’s structure remains firmly within an uptrend, with price respecting its long-term moving averages (MAs). The $112,000 resistance, marked by prior supply and volume cluster activity, represents the final barrier before a potential new phase of price discovery.
For the time being, the flagship decentralized finance (DeFi) asset is changing hands at $103,101.40, suggesting an increase of 1.38% in the last 24 hours, having declined 6.34% across the previous seven days, and recording a loss of 17.06% on its monthly chart, according to the most recent price data.
All things considered, $112K is the level to watch closely. A clean break above it, combined with confirmation via volume and close, could mark the beginning of Bitcoin’s next leg higher, potentially setting up another challenge of the previous highs.
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What do you think?
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