Bitcoin Tests Long-Term Channel Top Again, Here’s Why Traders Are Watching the $122,500 Level Clo...

Bitcoin tests long-term channel top as price trades between $110,880 and $122,500 within tightening wedge.

BTC holds above $115K with rising volume, steady structure, and key moving averages intact.

A confirmed breakout above $122,500 may open the path toward the projected $260,000 target.

Bitcoin is once again testing the upper boundary of its long-term ascending channel, the same level that marked cycle tops in 2018 and 2021. At the time of writing, Bitcoin was trading at $117,696.35, gaining 6.14% over the past seven days. The setup signals a potential breakout as volume and structure align.

Bitcoin Revisits Multi-Year Resistance Within Tightening Wedge Formation

According to analysis prepared by Merlijn The Trader, Bitcoin has reached a historic resistance zone last touched in 2021. The ascending channel drawn since 2017 has contained all previous cycle highs

This time, however, the price is rising within a tightening wedge, creating conditions for a breakout. The wedge has formed gradually since mid-2022, with higher lows supporting the uptrend

Bitcoin broke above $115,000 earlier this week and remained above that level, showing consistent demand. The neckline resistance sits near the upper channel, and price is now trading between $110,880 and $122,500, reflecting increased intraday activity.

Volume, Structure, and Supply Metrics Point to Breakout Setup

Bitcoin’s 24-hour trading volume is recorded at $72.64 billion, with a slight decrease from the previous session. Despite this, the volume-to-market cap ratio stands at 3.14%, reflecting steady liquidity. Market capitalization is at $2.34 trillion, while the fully diluted valuation reaches $2.47 trillion.

Source: CoinMarketCap

The total and circulating supply is 19.89 million BTC, nearing the 21 million cap. Bitcoin has remained above its 50-day and 200-day moving averages, with the technical structure favoring a continuation. Price movement on July 13 showed a sharp upward spike, followed by steady action near the wedge resistance.

The current structure suggests Bitcoin is compressing within a final squeeze. If price breaks above the channel top with strong confirmation, chart projections show targets extending toward the $260,000 range. Traders are now watching daily closes to validate the next phase of this setup.

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