Bitcoin jumped to a new high of $112K, but traders still watch the key $111.7K level for clues.
A close above $111.7K could confirm a real breakout, or the price may fall back into the old range.
The last candle shows buyers pushed hard but sellers reacted fast near the past resistance line.
Bitcoin (BTC) has broken out of its descending channel and reached a new all-time high (ATH) of approximately $112,100. However, the price is now retesting a critical resistance zone near $111,700, which aligns with its previous ATH. Market participants are closely watching this level for confirmation of a sustained breakout.
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If BTC fails to close above this level on the daily chart, it may risk triggering a fakeout. The current setup shows multiple interactions with both the upper and lower channel boundaries, making the recent breakout significant. Traders now await confirmation before placing larger directional bets.
A key question now emerges: will Bitcoin maintain this breakout and establish support above $111.7K, or trap late long positions?
Channel Breakout Signals Momentum Shift
The BTC/USD chart reveals a well-defined descending channel that guided the price since early May. Multiple red arrows indicate rejections at the upper boundary, while green arrows show bounces from the lower trendline. This consistent behavior formed a clear trading range for over two months.
The breakout above the upper boundary comes after repeated attempts failed around the $109,000 level. A bullish candle on the daily timeframe has now closed just above the resistance trendline. This suggests growing buyer confidence, especially after weeks of sideways consolidation.
Historical data shows BTC tends to break out with strong volume near ATH levels. While a daily close above the $111,700 resistance remains essential, initial signs point toward renewed bullish interest. A successful close above this mark may open the path toward $115,000 in the short term.
Previous ATH Zone Remains a Key Barrier
Although BTC reached $112,100, it quickly encountered resistance near $111,700—the prior ATH that marked the peak of a major rally. This level now serves as a psychological and technical barrier. Traders often use such zones to confirm trend continuations or identify potential traps.
The price action on July 10 shows hesitation near this level, with candle wicks reflecting selling pressure. This suggests sellers are defending the region aggressively. A rejection here without a confirmed breakout could lead to a retracement back inside the previous channel.
Technical analysts recommend a clean daily close above $111,700 to validate the breakout. Without that confirmation, price could slip, potentially trapping long positions taken during the breakout. Such moves often result in liquidations and forced exits, disrupting bullish momentum.
Market Awaits Confirmation and Directional Clarity
The broader market sentiment remains cautiously optimistic. Many traders consider the breakout an early sign of upward continuation, provided BTC holds above the $110,000 zone. However, the need for a strong close above resistance remains critical for broader conviction.
Observers point to the channel’s structure and the strength of the breakout as key indicators. A firm breakout confirmed by volume and daily closing strength would likely invite further institutional interest. In contrast, a failure could push BTC toward $105,000 or lower.
Traders are advised to monitor price action near the $111,700 level. A confirmation above that level would invalidate the previous resistance and likely trigger the next leg up. Until then, the market may remain range-bound with elevated volatility.
