Bitcoin is once again challenging its all-time high, trading just above $121,000—a move that has historically triggered similar bullish momentum across other cryptocurrencies closely correlated with Bitcoin or Ethereum, both of which remain in strong uptrends.

One asset potentially benefiting from this trend is Arbitrum, which has been forming a notable technical setup since early August. The key question now is: How could this structure be approached, and which factors may prove significant?

Arbitrum technical analysis

ARBIUSD - 1 Day Time Frame

At first glance, buying near a resistance level may seem counterintuitive. However, it is important to define the specific resistance zone in focus and understand why it could present growth potential.

The conventional method of marking resistance and support zones can be limiting—when the price respects a zone repeatedly, it may, in certain cases, be more effective over the long term to consider trading in the opposite direction. A core reason for this is liquidity accumulation.

This concept can be illustrated with Arbitrum’s recent price action. Since the beginning of the year, the price has tested the psychological $0.50 level on three occasions. Bullish price delivery has been evident since early August, bringing the price back to this level. While $0.50 might typically be seen as a natural selling point, an alternative interpretation is possible, particularly given the tendency for many retail traders to take the losing side of the market.

Arbitrum price target

This aligns with a recurring entry pattern: an initial sweep of Sell-Side Liquidity followed by a confirmed close above a defined resistance. On the attached chart, this resistance zone is highlighted in blue, with its upper and lower bounds drawn at the exact high and low of selected impulse candles.

This provides a clear technical criterion for when a bullish structure—and by extension, a potential long setup—may be considered valid. If the price holds above this zone on the daily timeframe, the bullish context remains in play. Conversely, a daily close below the lower bound could substantially weaken the probability of further upside.

A protective Stop Loss could be positioned just below the internal low marked on the chart. Potential Take Profit levels remain aligned with the previously identified Buy-Side Liquidity zones, as in earlier analyses.