Bitcoin tested the $112K zone and bounced upward while holding its long rising trendline since early summer.
Price reached $114K after rejecting lower levels and showed renewed strength above the previous breakout line.
Bulls may now aim for a push toward $120K and possibly reach $124K if momentum builds above the trend base.
Bitcoin rebounded to $114,351 after retesting the $112,000 support and maintaining its multi-month ascending trendline from March lows. The structure reveals a tight channel formed in July, followed by a pullback that found footing along a key bullish trendline.
https://twitter.com/IncomeSharks/status/1952077997642764775
The current setup suggests a potential recovery toward $120,000 and $124,000, provided the trendline remains intact over the coming sessions.
Tight Price Channel Breaks but Trendline Holds
The chart, published August 3, 2025, shows Bitcoin recently broke down from a tight and compressed price channel formed through July. That pattern followed a strong breakout above $112,000 which pushed BTC into a narrow consolidation range.
The move created tension within a narrow band, suggesting indecision among market participants. A pullback occurred, testing both the lower channel and the ascending support line at the same time.
That ascending trendline, extending from May through early August, offered a base near $112,000. Price bounced off this area, regaining upward momentum and climbing toward $114,351. This alignment reinforces the broader bullish structure that has developed over five months.
$112K Support Becomes Key Decision Point
The $112,000 level now acts as a pivotal short-term support. A break below this price could invalidate the bullish trendline that has supported price since early Q2.
Previous resistance near $112,000 flipped to support after June’s breakout, marking a textbook retest of the breakout zone. Bitcoin’s ability to hold this area strengthens the case for continued upside action.
The price is now climbing with a 1.61% intraday gain, confirming a reaction from buyers at the key level. Should momentum increase, the next price targets would be $120,000 and $124,000, both of which cap previous rally extensions.
Volume and follow-through will determine if the bounce leads to another leg higher. If sellers regain control, BTC could revisit deeper levels near $108,000. For now, the ascending structure remains valid.
Bulls Retain Control Above the Uptrend Line
The overall trend remains bullish as long as Bitcoin trades above its rising support line. The market has respected this trajectory since late May, forming higher lows and steady upward price action.
Technical traders note that such trendlines often act as strong support zones in trending markets. Bitcoin has used this guidepost to reset and continue its push higher.
Market sentiment remains cautiously optimistic. With price stabilizing after the recent pullback, attention turns toward whether bulls can reclaim the $120,000 zone quickly.
A return above the upper boundary of the previous channel may confirm renewed strength. Until then, the $112,000 trendline remains the most critical line to watch.
Will Bitcoin use this trendline bounce to launch toward $124,000, or has bullish momentum already peaked for this cycle?
