Bitcoin Bulls Face $113K Test as Fed Hopes Fuel Breakout Dreams

Bitcoin’s price has returned to the $113,000 level, rekindling bullish sentiment among traders who see potential for a sustained breakout. The price action has drawn attention from key market participants, many of whom believe that Bitcoin is on the verge of reclaiming previous highs. Over the past several trading sessions, BTC has oscillated within a range between $110,000 and $113,000, with traders closely watching for signs of strong spot demand to confirm a long-term upward shift. According to recent data, BTC/USD hit a local high of $113,279 ahead of the Wall Street open, building on a higher low from the previous weekend that reinforced $110,000 as a key support level [1]. Analyst Michaël van de Poppe noted that Bitcoin had regained the 20-day simple moving average and the $112,000 psychological level, both of which are seen as technical indicators of a bullish reversal [1].

However, not all traders are confident in the sustainability of the current upward movement. Some, like Ted Pillows, have highlighted the lack of strong spot demand, warning that the recent rally is largely driven by perpetual futures markets. Pillows pointed to metrics such as open interest and funding rates as evidence that the rally might not hold without broader retail and institutional participation [1]. In addition, order-book liquidity数据显示 shows a concentration of sell orders between $113,000 and $114,500, raising questions about whether the price can push beyond these levels without encountering significant resistance [1].

The macroeconomic landscape has also contributed to the current bullish mood, with expectations of a Federal Reserve rate cut next week playing a key role in shaping market sentiment. Traders are optimistic that the rate cut will encourage risk-on behavior and boost demand for assets like Bitcoin. Market analysts at Material Indicators noted that the zone below $115,000 could provide some friction for the bulls but emphasized that the overall macroeconomic tailwinds should support a return to highs [1]. Meanwhile, the possibility of a short squeeze remains a topic of discussion, with some traders observing that a significant number of leveraged short positions are concentrated in the $115,000 range [1].

Technical analysts are also identifying potential patterns that could signal a more definitive upward trend. A bullish inverse head-and-shoulders pattern is forming on Bitcoin’s hourly chart, with a neckline at $113,378. A breakout above this level could propel BTC toward $120,000, according to CoinDesk analyst Omkar Godbole [3]. If the pattern fails, however, a breakdown below $107,300 could reinforce a bearish setup [3]. In the short term, Bitcoin’s 24-hour price remains stable near $111,917, with a 0.7% gain recorded over the past 24 hours [4]. The Relative Strength Index and MACD are both trending in a neutral to bullish direction, suggesting that momentum is shifting in favor of buyers.

Institutional demand is also contributing to the positive outlook. Japanese investment firm Metaplanet added 136 BTC to its holdings, raising its total to 20,136 BTC, while El Salvador purchased an additional 21 BTC to its reserves [4]. Bitcoin spot ETFs also saw $246.42 million in inflows last week, marking the second consecutive week of positive flows [4]. These developments suggest that institutional interest remains strong, potentially supporting a long-term bullish trend.

While the path to $116,000 remains a primary focus for many, the market remains cautious. A retest of the $113,000 level could offer a decisive signal as to whether the current rally is sustainable. If bulls can maintain control, a renewed assault on Bitcoin’s all-time highs could be on the horizon.

Source:

[1] Bitcoin taps $113K as analysis sees 'return to highs' on Fed rate cut (https://cointelegraph.com/news/bitcoin-taps-113k-analysis-sees-return-to-highs-on-fed-rate-cut)

[2] MYX Finance Explodes by 280% Daily, Bitcoin Flirts With $113k Market Watch (https://cryptopotato.com/myx-finance-explodes-by-280-daily-bitcoin-flirts-with-113k-market-watch/)

[3] BTC Could Surge to $120K With Bullish Head-and-Shoulders Pattern (https://www.coindesk.com/markets/2025/09/08/btc-looks-to-be-prepping-for-a-surge-to-usd120k-technical-analysis)

[4] Bitcoin Bulls Eye $116K as Fed Rate Cut Bets Trigger Breakout Hopes (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-bulls-eye-116k-as-fed-rate-cut-bets-trigger-breakout-hopes)