Wall Breaking? Bitcoin Faces Key Test Near $126K Trendline

Bitcoin trades close to $121.6K, testing main resistance at $126K. Analysts look ahead to a breakout or correction as futures open curiosity stays excessive.

Bitcoin is buying and selling close to $121,600 after reaching a brand new all-time excessive above $126,000 earlier this week. The asset has slowed and is now shifting sideways just under a serious diagonal resistance that has capped the worth for a number of months. Analysts are watching to see whether or not Bitcoin can break by means of or if will probably be rejected as soon as once more.

In the meantime, the market is holding close to a key degree whereas open curiosity stays excessive within the futures market.

Bitcoin Struggles Close to Lengthy-Time period Resistance

Bitcoin is dealing with resistance at a trendline that has held agency since earlier cycle tops. The newest weekly candle exhibits one other rejection close to $126,000, adopted by a pullback of round 5.5%. Earlier this 12 months, related rejections led to drops of practically 10% and near 30%.

The distinction this time is the scale of the pullbacks. Every rejection has been smaller than the final. Rekt Capital pointed out that “this trendline seems to be a weakening level of rejection,” suggesting sellers could also be dropping power at this degree.

On the decrease timeframes, Bitcoin is holding simply above $121,000. This zone is marked by a earlier assist degree and contours up with a Fibonacci retracement close to $119,550. Daan Crypto Trades famous that that is the world to look at.

$BTC Not right here to overcomplicate issues.

We noticed a pointy impulse up and an all time excessive sweep.

At the moment value is consolidating beneath this diagonal resistance. If that’s damaged, I’m anticipating this to maneuver to new highs fairly rapidly.

Key space to carry beneath is ~$120K. If… pic.twitter.com/MK7gYzINWJ

— Daan Crypto Trades (@DaanCrypto) October 10, 2025

The asset is presently consolidating in a decent vary. Quantity has slowed, which frequently occurs earlier than a bigger transfer. The pattern stays bullish total. A confirmed greater low would assist one other leg greater, particularly if resistance breaks.

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Bearish State of affairs Nonetheless in Play

Whereas short-term sentiment stays optimistic, some market individuals are nonetheless cautious. Analyst Ali Martinez shared a state of affairs the place Bitcoin will get rejected at $124,000 and begins a correction towards $96,000. If that degree fails, the following main assist is round $70,000.

The projected path exhibits a sluggish restoration starting in late 2026, with Bitcoin climbing again towards $90,000. This state of affairs displays a broader retracement, not a pattern reversal, and suggests long-term construction may nonetheless stay intact.

Futures Market Stays Heated

Information from Glassnode shows that futures open curiosity remains to be elevated. Because of this many merchants are positioned on each the lengthy and brief sides. Sharp strikes in both route have triggered liquidations. Glassnode mentioned the market is present process “a leverage reset” as volatility flushes out extra positions.

With Bitcoin sitting just under resistance and leverage nonetheless excessive, merchants are watching carefully. A transfer above the present vary may open the way in which towards $130,000. If resistance holds, one other pullback may prolong the present consolidation.