Bitcoin Bulls Push Against Key Barriers After Trendline Breakout

Bitcoin broke above a long term downtrend, with $114K support and $118K resistance guiding the next short term direction.

Analysts note the 20 week MA near $112K is a major hurdle, with rejection risking another test of lower levels.

Liquidity sweeps at highs and lows show price action, with $103K–$104K marked as a key demand zone if support breaks.

Bitcoin is consolidating near $112,000 after breaking above a major downtrend line that held the market through late August. The digital asset had repeatedly faced rejection at this descending line from the $126,000 peak, indicating bearish pressure

However, the breakout earlier this month changed market outlook, raising the possibility of renewed bullish strength. Analysts note that the current structure shows key resistance and support zones that may guide the next decisive move.

Breakout Aligns With Fibonacci Levels

The breakout has changed attention toward key Fibonacci retracement levels. The 0.382 level near $114,000 now acts as an interim support, while the 0.618 level near $118,000 forms the next resistance

BTC/USDT 4-hour price chart, Source: Kamran Asghar on X

Price has been consolidating within a triangular structure, with $112,056 acting as the immediate pivot. Analysts emphasize that a move beyond $114,000 could strengthen momentum, while a failure to hold above this level risks revisiting lower ranges.

Predictions show that sustained bullish pressure could push Bitcoin toward $118,000 before retesting the $124,000–$126,000 area. However, a breakdown under $112,000–114,000 could expose the $108,000–110,000 region

According to analyst Kamran Asghar, the breakout represents a phase where bulls counteract selling waves strongly enough to limit downside attempts.

Moving Averages Add Pressure Ahead of CPI

While the breakout offers bullish potential, other technical markers present challenges. Analyst Michael van de Poppe noted that Bitcoin continues to trade beneath the 20 week moving average, a level near $112,000 that has repeatedly pressured price action

BTC/USDT 1-day price chart, Source: Michael van de Poppe on X

He stated that without a break above this threshold before the upcoming CPI release, the market could retest lower levels before attempting recovery.

Resistance between $114,755 and $116,813 has already pushed back recent attempts to advance, showing strong selling presence. Above this zone, $119,504 stands as another resistance level, while the all time high near $123,288 is a longer term barrier.

Liquidity Zones and Demand

Another factor influencing price behavior is liquidity hunting at prior highs and lows. Bitcoin recently swept liquidity around its $123,288 high before retreating. This pattern suggests that stop orders continue to drive reversals at key points

Current support is at $111,918, while failure here may lead to a test of the $103,190 to 104,000 demand zone. Volume readings support this view, as August declines produced spikes in selling pressure followed by moderate recovery candles

Analysts suggest that these conditions leave both downside liquidity and upside resistance in sharp focus, making the $114,000–118,000 level decisive for near term direction.

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