Bitcoin price stages 2-week downtrend breakout with $112K next target

Key points:

• Bitcoin manages a daily candle close outside its downtrend for the first time since mid-August.

• This means that a breakout should be “confirmed,” according to analysis.

• BTC price expectations vary between traders, with many still expecting new lows.

Bitcoin (BTC) has a new reversal signal that could end two weeks of BTC price losses, analysis hints.

BTC/USD one-day chart with downward trend line. Source: Cointelegraph/TradingView

BTC price closes above key trend line

Data from Cointelegraph Markets Pro and TradingView reveals BTC/USD closing outside a downward trend line for the first time since Aug. 13.

Bitcoin proponents are eager to see confirmation that the bulk of the latest bull market correction is over.

Early cues such as a bullish divergence on the relative strength index (RSI) have accompanied a rebound from multiweek lows of $107,270.

Now, the entire retracement from August’s all-time highs is getting challenged on the daily chart.

As noted by popular trader and analyst Rekt Capital, Tuesday’s daily candle sought to break through several weeks of downward resistance — something that price ultimately succeeded in doing.

“BTC is attempting to break its two-week old Daily Downtrend,” he wrote in an X post at the time.

BTC/USD one-day chart. Source: Rekt Capital/X

Bitcoin traders eye $112,000 short liquidations

BTC/USD circled $111,000 at the time of writing Wednesday ahead of some key US macroeconomic data prints.

Related: Bitcoin to see ‘one more big thrust’ to $150K, ETH pressure builds: Trade Secrets

Among market participants, however, opinions continued to diverge over the fate of the Bitcoin bull market.

Calls for a retest of $100,000 or lower remained, with pseudonymous trader and analyst Il Capo of Crypto, known for his bearish market takes, telling X followers to “get ready for impact” on the day.

Get ready for impact.

Many placed importance on $112,000 as a resistance flip target.

“Very keen to see what $BTC can do at this resistance,” crypto trader, analyst and entrepreneur Michaël van de Poppe summarized.

BTC/USDT one-day chart with RSI data. Source: Michaël van de Poppe/X

That area coincided with a patch of ask liquidity on exchange order books, as flagged by CoinGlass.

“Liquidations building above 112-112.4K,” popular trader Killa noted, with fellow trader Daan Crypto Trades calling $114,000 a “major area to watch” for the same reason.

BTC liquidation heatmap (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.