Bitcoin Holds Key Trend Supports, Maintains Bullish Setup Despite Pullback

Bitcoin holds both diagonal and horizontal support, with price reacting strongly at the confluence zone around $113,500 amid a broader uptrend.

After a breakout and compression phase, Bitcoin tests support without breaking structure, indicating controlled pullback behavior within the bullish trend.

A daily close below both supports could shift market direction, but current positioning shows Bitcoin remains aligned for potential upside continuation.

Bitcoin continues to trade within a bullish structure, supported by both diagonal and horizontal levels that remain unbroken.

Key Support Levels Still Valid

Bitcoin has maintained its position above the rising diagonal trendline established in April and the horizontal breakout zone near $113,500. These levels are considered essential in preserving the current bullish momentum. A recent tweet by IncomeSharks highlighted the importance of these supports, stating there is “no reason to invalidate squiggles,” as long as the price holds above both.

The horizontal level acted as resistance before Bitcoin’s breakout in mid-July. Now retested as support, it adds strength to the ongoing structure. The diagonal trendline continues to guide higher lows, reinforcing buyer interest at each dip.

Market Structure Suggests Higher Moves

After a breakout from a prolonged range, Bitcoin entered a tight channel between $116,000 and $121,000. The recent rejection from the upper boundary led to a quick pullback, but the price remains above both the horizontal and diagonal supports. This area now serves as a confluence zone for potential bullish continuation.

IncomeSharks noted that Bitcoin is still positioned for higher as long as it doesn’t close below both supports. The chart also reflects a possible V-shaped rebound forming, consistent with typical bullish retests that occur after consolidation.

The current setup remains aligned with common market patterns: breakout, compression, pullback, and retest. These movements indicate that momentum has not shifted in favor of sellers.

No Breakdown Yet, Bulls Remain in Charge

Bitcoin continues to show strength by holding critical levels despite short-term volatility. The trendline and horizontal breakout zone offer clear invalidation points. Until both are broken with a confirmed close, the bullish outlook remains valid.

Traders are closely monitoring the price around $113,600. A close above the support zone would support the ongoing bullish structure. A close below both the diagonal and horizontal levels could attract stronger selling pressure. For now, Bitcoin remains technically positioned for further upside movement.

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