Bitcoin News Today: Bitcoin Near $112K Support With $133K Target in Sight

Bitcoin’s price is showing strong technical support as it trades near all-time highs, with key indicators suggesting a potential rise to $133,000 if it holds above $112,000. Recent on-chain and technical analysis suggests a bullish outlook for the cryptocurrency, particularly through the MVRV Extreme Deviation Pricing Bands model [1]. According to this model, $133,000 is seen as the next major resistance level, provided the $112,000 level is maintained [1].

Bitcoin traded at $118,685 on Sunday, representing a 1.5% increase from the previous day and contributing to a market capitalization of $2.36 trillion [1]. The 24-hour trading volume reached $62.58 billion, an increase of 17.67% compared to the prior 24-hour period. These figures reflect heightened market activity and investor interest. The cryptocurrency’s dominance in the broader market also grew to 59.53%, indicating a stronger relative position compared to other digital assets [1].

From a technical standpoint, the BTC Z-Score (Price, 30/365) is currently at +1.5σ above its one-year mean, suggesting that while the price is elevated, it has not yet entered the overheating zone of +2.5σ [1]. Additionally, the Activity–Price Divergence (APD) remains near −1.5, which implies that price growth is still ahead of on-chain activity. Analysts suggest that a movement of APD toward zero could indicate either a slowdown in price momentum or increased on-chain activity [1].

Despite a slight 1.37% daily decline in open interest for Bitcoin futures to $197.04 billion, signaling some profit-taking, the Fear and Greed Index remains at 70, indicating market greed but not extreme euphoria [1]. This suggests that while optimism is present, the market remains cautious. Furthermore, ETF inflows are contributing to bullish momentum, with 3.44K BTC net inflows recorded on August 8, driven largely by the IBIT fund, which saw a 3.07K BTC increase [1].

Institutional support for Bitcoin is also growing, with major entities holding substantial reserves. The largest corporate holder currently possesses over $70 billion in BTC, while governments such as the United States and China each hold more than $20 billion in Bitcoin [1]. These holdings not only add credibility to the cryptocurrency but also help stabilize the market by reducing the circulating supply.

Macro factors also play a role in Bitcoin’s trajectory, with traders closely watching U.S. inflation data ahead of the Federal Reserve’s September meeting [1]. A weakening U.S. Dollar Index, currently at 98.01, further supports Bitcoin’s appeal as an alternative store of value [1]. Meanwhile, gold futures remain stable at $3,398, indicating that Bitcoin is not currently facing significant competition from traditional safe-haven assets [1].

Source: [1] Bitcoin Could Hit $133K if It Holds $112K, Pricing Bands Indicate (https://coinmarketcap.com/community/articles/68990aa29af91a539f438988/)