Bitcoin Battles $112,500 Resistance, ATH Range Ahead?

Key Insights:

• Bitcoin tests $112,500 resistance again, with breakout targets at $116,933 and $123,288 if momentum strengthens.
• CMO falls below 20, a level historically marking bear markets and signaling possible fading bullish momentum.
• Support zones at $108,000 and $102,000 remain critical if Bitcoin rejects resistance and reverses lower.

Bitcoin is pressing against the $112,500 resistance level, a price area that has stopped several rallies in recent months. After recovering from lower support, the market is once again challenging this zone.

A close above $112,500 would put Bitcoin back inside the upper trading band that has previously led toward all-time highs. Analysts point to $116,933 and $123,288 as the next resistance zones.

Market watcher Lennaert Snyder said,

 “Reclaiming $112,500 results in Bitcoin re-entering the top ATH range,”

Rejection Opens Downside Levels

If the move stalls, traders are preparing for possible short setups. Snyder noted, “Rejecting $112,500 is good for shorts after confirmation,” signaling the importance of waiting for clear signs before acting.

Key support areas remain around $108,000 and lower near $102,000. These zones are being watched as potential reversal points where buyers may look to re-enter.

Momentum Weakens on CMO Signal

The Chande Momentum Oscillator (CMO), a tool used to track Bitcoin’s long-term cycles, has slipped back under 20. Historically, readings above 20 have marked bull markets, while readings below 20 have matched periods of weakness.

“August’s close just pushed it back below 20,” noted analyst Ali. Similar shifts in 2014, 2018, and 2022 were followed by deeper corrections or extended consolidations. The latest reading points to fading momentum, even as Bitcoin tests a major resistance zone.