Bitcoin is currently in a local downtrend, with price now testing a major support zone around $112,500. This level, backed by multiple technical confluences, may serve as the base for a potential reversal if defended on lower timeframes.
Price action has been drifting lower over the past sessions, finding its way into a key support zone defined by the 0.618 Fibonacci retracement, the blue upward trendline, and prior structure. The $112,500 region now acts as the immediate level to hold from an intraday perspective. If bulls are able to defend this zone and volume confirms participation, the probability of a rotation higher toward $123,000 increases significantly.
Key Technical Points:
- Support at $112,500: Aligned with 0.618 Fibonacci, trendline support, and structural pivot
- Intraday Confirmation Required: Holding this level on lower timeframes improves the
probability of reversal
= $123,000 Target in Sight: Technical target for rotation if a bottoming structure forms and holds
From a short-term perspective, Bitcoin has clearly shifted into a local downtrend, creating a sequence of lower highs and lower lows. However, the current area around $112,500 presents a strong confluence of support that could interrupt this trend. This zone includes the 0.618 Fibonacci retracement from the most recent swing move, a respected upward trendline (blue), and a previous structural pivot. Together, these elements increase the probability of a bounce—provided price can stabilize.
At this stage, price may still trade sideways and consolidate within this region to form a bottoming structure before any meaningful move higher. For traders, this means confirmation is key. Watching for multiple intraday candle closes above the support zone, paired with an increase in bullish volume, would suggest that demand is building. Only then would the setup favor an entry targeting the local highs.
The upside technical target from this area remains at $123,000, representing the recent swing high and a clear resistance level. A reclaim and rotation to this level would validate the support zone and reintroduce the bullish bias in the short term. Until that occurs, however, price could continue to consolidate, especially if volume remains low or indecisive.
The overall structure still leans constructive, as long as $112,500 holds. A breakdown below this level would weaken the short-term setup and potentially open the door to deeper downside probing. But for now, the region remains a high-probability bounce zone on lower timeframes.
What to Expect in the Coming Price Action
Bitcoin is testing critical intraday support at $112,500. If this level holds with volume confirmation and intraday structure aligns, a rotation toward $123,000 is likely. However, price may continue consolidating at this level before a clear direction forms.
Price action has been drifting lower over the past sessions, finding its way into a key support zone defined by the 0.618 Fibonacci retracement, the blue upward trendline, and prior structure. The $112,500 region now acts as the immediate level to hold from an intraday perspective. If bulls are able to defend this zone and volume confirms participation, the probability of a rotation higher toward $123,000 increases significantly.
Key Technical Points:
- Support at $112,500: Aligned with 0.618 Fibonacci, trendline support, and structural pivot
- Intraday Confirmation Required: Holding this level on lower timeframes improves the
probability of reversal
= $123,000 Target in Sight: Technical target for rotation if a bottoming structure forms and holds
From a short-term perspective, Bitcoin has clearly shifted into a local downtrend, creating a sequence of lower highs and lower lows. However, the current area around $112,500 presents a strong confluence of support that could interrupt this trend. This zone includes the 0.618 Fibonacci retracement from the most recent swing move, a respected upward trendline (blue), and a previous structural pivot. Together, these elements increase the probability of a bounce—provided price can stabilize.
At this stage, price may still trade sideways and consolidate within this region to form a bottoming structure before any meaningful move higher. For traders, this means confirmation is key. Watching for multiple intraday candle closes above the support zone, paired with an increase in bullish volume, would suggest that demand is building. Only then would the setup favor an entry targeting the local highs.
The upside technical target from this area remains at $123,000, representing the recent swing high and a clear resistance level. A reclaim and rotation to this level would validate the support zone and reintroduce the bullish bias in the short term. Until that occurs, however, price could continue to consolidate, especially if volume remains low or indecisive.
The overall structure still leans constructive, as long as $112,500 holds. A breakdown below this level would weaken the short-term setup and potentially open the door to deeper downside probing. But for now, the region remains a high-probability bounce zone on lower timeframes.
What to Expect in the Coming Price Action
Bitcoin is testing critical intraday support at $112,500. If this level holds with volume confirmation and intraday structure aligns, a rotation toward $123,000 is likely. However, price may continue consolidating at this level before a clear direction forms.
Trade active
The trade is now active, with Bitcoin holding at the $112,500 support zone — a key area backed by the 0.618 Fibonacci, trendline, and structural confluence. Price is consolidating, and as long as this level holds on lower timeframes, the setup remains valid for a potential rotation toward $123,000. Watch for confirmation through volume and intraday candle structure.
Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.