Key Insights:
- Bitcoin reclaims 8-year trendline, holding above $115K with bulls eyeing $120K in coming weeks.
- Open interest plunges as price rises, suggesting short covering fueled breakout instead of new leveraged longs.
- Daily Bollinger Bands and MACD confirm bullish setup, with targets at $116,500–$118,000 if support holds.
Bitcoin broke out of a descending trendline on the 15-minute chart, climbing from a low of $11,334 to trade near $11,574. The breakout followed repeated attempts to move higher, with the downtrend line serving as resistance before being cleared.
Crypto Seth stated,
“$BTC BREAKING OUT AGAIN WHILE OPEN INTEREST CRASH.”
Open interest fell sharply during the move. This shows that many leveraged positions were closed or liquidated, rather than new long positions driving the rally. The rise in price alongside falling open interest points to short covering as a major factor.
Long-Term Trendline Reclaimed
On the 2-week timeframe, Bitcoin has reclaimed its 8-year trendline, a level that has acted as resistance in multiple past cycles. The breakout was recorded in July, but price briefly slipped below the line last month, testing $110,000 before rebounding. The latest close above $115,000 confirms the reclaim.
BitBull commented,
“$BTC has reclaimed its 8-yr trendline level. It had a breakout in July, and last month BTC lost this key level. But now, bulls have closed a strong candle. This shows BTC momentum is very strong, and a new ATH could happen in 2-3 weeks.”
Historical charts show rejections at this line in 2021 and 2022. Unlike those periods, Bitcoin is now holding above the level after a retest, adding weight to the bullish case.
Indicators Point to Strength
On the daily chart, Bitcoin is trading near $115,709, with the upper Bollinger Band at $116,200 acting as resistance and the middle band near $115,200 providing support. The MACD shows a bullish crossover, with the MACD line above the signal line and the histogram positive.
Holding above $115,200 could open the way toward $116,500–$118,000. A break back below this level would expose $114,000–$112,500, where recent consolidation took place.
Bitcoin (BTC) was priced at $115,841, with 24-hour trading volume at $44.29 billion. The coin has gained 1% over the past day and 5% over the past week.
Traders are watching whether Bitcoin can sustain its position above the long-term trendline and push toward $120,000 in the weeks ahead.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
