Bitcoin News Today: Bitcoin's $114K Support: ETF Bulls Clash with Derivatives Bears

Bitcoin's price action has drawn significant attention as the cryptocurrency consolidates near $120,000 amid profit-taking and leveraged positioning. Technical analysts highlight key support and resistance levels shaping near-term dynamics. According to CoinDesk's Omkar Godbole, Bitcoin (BTC) remains within a steep ascending trendline from lows near $110,000, with a clean breakout above the $135,000–$140,000 range contingent on sustained buying pressure. Conversely, a breach below the $118,000 level could trigger a corrective phase .

Support at $114,000 has also emerged as a critical threshold. Analyst TehThomas notes that Bitcoin's ability to hold this level reinforces a bullish case for a rally toward $120,000, with further gains dependent on institutional and retail demand . Meanwhile, on-chain metrics suggest Bitcoin is in a "buy zone," with short-term holders in profit and long-term accumulation activity intensifying .

The surge in U.S. spot Bitcoin ETF inflows has amplified bullish sentiment. Bitwise estimates Q4 inflows could surpass the $36 billion record set in 2024, driven by institutional access expansion and macroeconomic tailwinds. Morgan Stanley and Wells Fargo recently opened crypto allocations for advisors, unlocking demand for BTC exposure. As of October 6, ETF inflows hit $1.21 billion in a single day, with BlackRock's iShares Bitcoin Trust (IBIT) accounting for $969.95 million-its second-largest inflow of the year .

Leverage buildup in derivatives markets further underscores market conviction. Bitcoin's open interest in options has surged to $80 billion, rivaling futures markets, with Deribit and IBIT options dominating activity. FalconX reports that options flows now heavily influence price direction, particularly as institutions use structured products to hedge or amplify exposure. Meanwhile, futures open interest reached an all-time high of $50 billion, with annualized funding rates exceeding 8%, reflecting robust demand for leveraged long positions .

Macro factors, including the "debasement trade," also support Bitcoin's rally. The U.S. money supply has expanded 44% since 2020, driving inflows into assets perceived as hedges against fiat devaluation. Bitcoin's price surge to $126,199-a new all-time high-was preceded by $3.5 billion in ETF inflows last week, signaling strong institutional and retail alignment . However, analysts caution that rising leverage could trigger volatility. Glassnode notes that while the market hasn't yet overheated, historical patterns suggest excess leverage often precedes short-term corrections .

Looking ahead, Bitcoin's trajectory hinges on maintaining key support levels and sustaining ETF inflows. A successful hold above $120,000 could attract further institutional capital, while a breakdown below $114,000 may test near-term resilience. With October historically favoring crypto markets-dubbed "Uptober"-and Q4 positioning aligned, the stage is set for a pivotal period.

Source: [1] CoinDesk (https://www.coindesk.com/markets/2025/10/07/onwards-and-upwards-for-bitcoin-as-move-melts-down-dollar-and-bonds-signal-caution-to-risk-assets)

[4] Coin-views (https://www.coin-views.com/2025/09/btc-price-holds-crucial-114k-support.html)

[5] OKX (https://www.okx.com/learn/btc-price-analysis-key-levels)

[7] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-etfs-post-biggest-inflow-113215131.html)

[9] FXStreet (https://www.fxstreet.com/cryptocurrencies/news/bitcoin-etf-inflows-could-serve-as-potential-tailwind-for-q4-gains-202510090131)

[10] CoinDesk (https://www.coindesk.com/markets/2025/10/06/bitcoin-options-market-now-big-enough-to-move-spot-prices-falconx-says)