Bitcoin Holds Key 4-Year Trendline as Support Flips

Bitcoin has achieved a significant technical milestone by holding above a rising trendline that has influenced its price movement for the past four years. According to analysis shared by Ash Crypto, this critical level, which previously rejected Bitcoin’s price on three separate occasions over the last three years, has now flipped from resistance to support following a confirmed weekly candle close above it. The successful hold above this long-term trendline represents a crucial development for market structure, with Ash Crypto noting that “as long as BTC holds above this trendline, the long-term outlook stays bullish.”

The transformation of this four-year trendline from resistance to support marks a fundamental shift in market dynamics. This level has served as a key reference point for both bulls and bears since 2021, with its previous rejections creating significant price barriers. Now, with Bitcoin trading above this historical resistance zone, the trendline has become a foundation for potential upward movement, providing technical confirmation that the long-term bullish structure remains intact despite recent market volatility.

While the weekly chart demonstrates strength, the daily timeframe presents immediate challenges. According to Titan of Crypto, Bitcoin is currently testing the Tenkan-sen level on the Ichimoku chart, which has capped price movement during the recent bounce from the $82,000 area. Titan emphasized that “a clean close above it is needed to unlock higher levels,” indicating that until Bitcoin decisively breaks this resistance, the price may remain within a limited trading range.

The Ichimoku cloud analysis provides crucial near-term guidance for Bitcoin’s price trajectory. A successful break above the Tenkan-sen could open room for movement toward the Kijun-sen and potentially the lower boundary of the Ichimoku cloud. This technical framework suggests that while the long-term outlook appears constructive, immediate progress depends on overcoming specific resistance levels that have contained recent price action, creating a clear roadmap for traders monitoring short-term developments.

Data from Swissblock Technologies reveals encouraging signs of market stabilization. The firm’s “Risk Off Signal” peaked during Bitcoin’s recent drop but has since fallen from above 90 to approximately 61, indicating that the heavy selling pressure observed earlier may be easing. This decline in risk-off sentiment mirrors patterns seen in March and April, which were followed by periods of lower market risk and more favorable trading conditions.

That Martini Guy commented on these developments, noting that “Bitcoin selling pressure is easing. BTC is starting to form a bottom, as fear starts to drop.” The reappearance of low-risk indicators on Swissblock’s chart suggests the market may be forming a local bottom, with historical patterns showing that such risk level changes often occur near the end of major correction phases. This technical evidence aligns with the improving market structure observed in Bitcoin’s price action.

Santiment data reveals a notable divergence between large and small Bitcoin holders. The number of wallets holding at least 100 BTC has increased by 91 since November 11, indicating continued accumulation by whales despite market volatility. This accumulation pattern among large holders typically signals confidence in Bitcoin’s long-term prospects and often precedes significant price movements.

Concurrently, the number of small wallets is declining, suggesting retail investors are pulling back from the market. Santiment reported that “retail capitulation will generally play out well for crypto prices in the long run,” highlighting a historical pattern where retail exit often coincides with market bottoms. However, the data also shows mixed behavior among larger holders, with some older wallets moving coins and long-time holders reducing positions, creating a complex picture of investor sentiment during this volatile phase.