Bitcoin has flipped a multi-year diagonal resistance into support, marking a potential shift in long-term market structure and bullish control.
A weekly candle close above $113,000 could validate the breakout, signaling trend continuation and possible liquidation of short positions.
The confirmed inverse head and shoulders pattern aligns with the trendline, increasing the likelihood of an extended move toward $140K resistance.
Bitcoin has returned to a key technical level, showing signs of turning its multi-year resistance trendline into support. A confirmed weekly close above this zone could shift market momentum and accelerate a bullish move.
Resistance Flips to Support After Multi-Year Battle
Bitcoin’s price action appears to have completed a technical retest of a trendline stretching back to the 2021 and 2022 market cycle tops. This diagonal line, which consistently acted as resistance, was tested several times over the past years, including in mid-2024. However, the most recent interaction suggests a structural change.
In a tweet, analyst Anup Dhungana noted, "$BTC appears to have completed the retest of its multi-year trendline — now flipping into support." This flip signals a technical shift, where resistance has turned into support after multiple failed breakout attempts in previous years.
Bitcoin’s bounce off this trendline following a breakout attempt shows buyers stepping in at historically rejected levels. This price behavior may mark the early stages of a new bullish phase in the market.
Breakout Retest Complete as Short Squeeze Zone Emerges
The price structure on the chart reveals that Bitcoin broke above the former resistance before retracing to the same level. The pullback appears to have settled above the diagonal line, signaling a completed retest. Bitcoin is now trading within what some refer to as a “trap zone” — an area where short sellers are vulnerable to liquidation.
The tweet further suggested that if the current weekly candle closes above $113,000, it could confirm the breakout and strengthen bullish continuation. This level is considered a critical confirmation point in the current trend structure.
A close above this support-turned-resistance may not only affirm structural change but also trigger short covering. Traders who previously bet against the market may be forced to exit, creating upward momentum. This scenario opens the possibility of a rapid move toward the $130,000 to $140,000 range.
Technical Patterns Align for Potential Continuation
Within the prevailing rising channel, Bitcoin recently completed a classic Inverse Head and Shoulders pattern. This formation featuring a left shoulder, head, and right shoulder is resting on a neckline at the multi-year trendline. The confluence between structural trendline support and confirmation of the pattern strengthens the case for continuation.
This larger trend is unchanged. Since early 2023, Bitcoin has been printing higher highs and higher lows. Price is still contained by an ascending channel, which has clear upward momentum. The upper edge of this channel currently aligns with the $140,000 to $150,000 zone — which could act as the next major resistance if momentum builds.
According to the chart, a breakout confirmation could place Bitcoin on a clear path toward the channel’s upper resistance. Traders watching this setup are likely monitoring both the neckline and channel boundaries as potential target zones in the short to medium term.
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