- Bitcoin is trading near $112000 resistance which has stopped price before and traders watch this zone closely.
- The price shows a double rounded bottom pattern signaling strong recovery after a long correction ending in early 2025.
- Support near $49000 remains strong making the $112000 level a key point for possible price moves in the coming months.
Bitcoin (BTC) appears to be preparing for a significant breakout following a strong correction phase during late 2024 and early 2025. The latest 4-hour chart analysis reveals a complex pattern with long-term resistance and support levels playing a crucial role. The BTC price is currently testing critical resistance zones near $112,000 after recovering from a pre-pump correction phase. This movement follows a wide-ranging price curve seen over the past two years, hinting at an upcoming price surge.
The recent price action fits within a large ascending channel that has contained Bitcoin’s value between $50,000 and $112,000 since 2023. The analysis highlights two notable curves: a long rounded bottom from mid-2023 to late 2024 and a second rounding formation during the correction from late 2024 to early 2025. These price patterns suggest Bitcoin has gained momentum for a potential upward rally. With volume averaging 3.9 million over the last 338 days on this timeframe, the price action is noteworthy for investors tracking long-term trends.
Long-Term Resistance and Support Structures Define Bitcoin’s Trajectory
The orange trend line at the top of the chart marks Bitcoin’s major long-term resistance level near $112,000. This level has previously acted as a ceiling multiple times, preventing further upward price movement. The current price nearing this resistance zone prompts close monitoring of whether BTC can overcome it or face renewed selling pressure.
Conversely, a green ascending support line is identified around $49,000. This level has consistently provided a price floor during downturns since early 2023. The support trend indicates strong buying interest near this zone, which may limit significant price drops in the future. The intersection of these key lines forms a triangle pattern, with Bitcoin currently positioned to test the upper boundary.
Additionally, a white moving average curve indicates a bullish trajectory over the past several months. The moving average signals sustained upward momentum following the correction phase. Meanwhile, the Relative Strength Index (RSI) at the bottom of the chart shows notable fluctuations, recently approaching overbought levels above 70. This suggests growing buying pressure, though it also signals caution for potential short-term pullbacks.
Pattern Formations Signal Key Phases in Bitcoin’s Price Movement
Bitcoin’s price formed a large rounded bottom pattern from July 2023 to November 2024. This pattern often signals a trend reversal and bullish momentum. The subsequent correction phase during late 2024 to early 2025 appears as a smaller rounded formation, followed by a steady recovery. The double rounded bottom pattern supports the view of strengthening market sentiment.
The blue channel drawn around recent price movements shows consolidation within a narrowing range between roughly $95,000 and $112,000. This price tightening phase often precedes a breakout or breakdown, depending on market conditions and trading volume. Traders will likely watch this zone closely for signs of a decisive move.
Moreover, minor trendlines in red highlight recent lows and support points around $85,000. These intra-channel supports serve as critical zones to watch if the price fails to break higher resistance. The chart also shows increasing volume during upward moves, reinforcing the possibility of a breakout.
