Bitcoin Holds Above Multi-Year Trendline as Weekly Close Nears, Why This Matters for Bulls

Bitcoin holds above multi-year trendline, signaling possible breakout if weekly close confirms.

Low liquidations and stable open interest suggest minimal leverage pressure on current BTC move.

Institutional buying continues as long-term holders maintain positions despite short-term selling.

Bitcoin appears to have completed a retest of its multi-year trendline, which now acts as support. If the current weekly candle closes above this zone, analysts suggest it could validate the breakout and initiate a strong short squeeze. At the time of writing, BTC was trading at $114,075.

Technical Structure Aligns With Bullish Setup

CryptoAnup’s analysis shows Bitcoin has broken above a long-standing trendline and is now retesting it as support. The BTCUSD chart shows a rising channel that began in late 2022, with consistent higher highs and higher lows. This move reflects a long-term structural uptrend.

A head and shoulders pattern formed earlier this year, with the breakout above the neckline aligning with the current rally. Price touched the upper boundary of the channel around $113,220, entering what analysts refer to as a short squeeze zone. If this level holds, historical patterns suggest a possible continuation toward higher resistance.

Source: MerlijnTheTrader(X)

An observation by Merlijn The Trader described this trendline as the “most important line in the market.” He noted that a successful retest often leads to sharp upward moves. “It’s not just technical. It’s psychological,” he wrote on X, signaling broader market attention on this level.

Market Activity and Whale Accumulation Continue

According to data from Glassnode, total BTC liquidations stood at $109.9 million, which is low compared to previous corrections. The open interest-to-market cap ratio remained stable at 0.027, suggesting low leverage pressure in the derivatives market.

Institutional interest also remains present. MicroStrategy recently added 21,021 BTC and filed to raise $4.2 billion for further acquisitions. At the same time, Metaplanet plans to expand its holdings, aiming for 210,000 BTC by 2027.

Glassnode data shows that most recent selling came from short-term holders, while long-term investors continue to hold. This trend supports the idea that the current dip could serve as a setup for future gains.

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