Bitcoin News Today: Bitcoin's Bounce Hinges on $113,000 as Whales Offload 147,000 BTC

Bitcoin's recent V-shaped recovery has sparked debate over the sustainability of the bullish momentum, as technical indicators and on-chain data present a mixed outlook. The cryptocurrency briefly rebounded to $114,000 after a $16 billion liquidation event in late October, with spot ETF inflows turning positive at $522 million for Bitcoin and $547 million for Ethereum Bitcoin Hovers Near $113K as BTC RSI Shows Neutral Zone Amid Fed Rate Cut Impact^[5]. This rebound, however, faces challenges as key support levels and market sentiment remain under scrutiny.

Technical analysis highlights a critical juncture for Bitcoin. The price has tested the $113,000 support zone multiple times, with a sustained close above $113,500 potentially triggering a breakout toward the $120,000 liquidity zone . A cup formation on the BTC/USDT chart suggests a recovery trend, though liquidity data indicates that short-term positions concentrated above $115,500 have been liquidated Crypto Technical Outlook: BTC Holds $116K, ETH Breaks Resistance^[1]. Meanwhile, the Relative Strength Index (RSI) remains in a neutral zone at 46.20, signaling consolidation and potential for a directional breakout Bullish Divergences Push BTC to $113K As Whales Sell Supply^[8].

On-chain activity reveals diverging signals. While mid-sized investors and institutions have accumulated Bitcoin in the $110,000–$113,000 range, large whale wallets have sold 147,000 BTC since August, reflecting ongoing distribution . This contrasts with historical patterns, where V-shaped recoveries on 30-minute timeframes have often led to higher gains or sideways trading, with fewer instances of further declines Bitcoin Eyes $113K Support as Critical Test Looms Ahead of FOMC Decision^[6]. However, the current low implied volatility-its lowest since October 2023-suggests a potential for a sharp move, either up or down .

Market structure analysis underscores the importance of the $113,000 level. A failure to hold above this threshold could trigger a sell-off toward $110,500, with further support at $108,000 . Conversely, a breakout above $117,300 could signal renewed bullish momentum, targeting $118,500 and beyond . Institutional demand, such as MicroStrategy's recent $60 million Bitcoin purchase, provides a stabilizing floor for prices .

Derivatives markets, however, signal caution. Open interest and funding rates have softened, with options skew favoring downside protection Bitcoin Hovers Near $113K as BTC RSI Shows Neutral Zone Amid Fed Rate Cut Impact^[5]. This aligns with on-chain data showing that exchange reserves are at multi-year lows, limiting immediate selling pressure but not eliminating structural risks .

Historical context adds nuance to the current rally. Bitcoin has exhibited V-shaped recoveries multiple times in 2025, including rebounds from $61,000 to $62,800 in October and $55,700 to $60,000 in September Bitcoin Eyes $113K Support as Critical Test Looms Ahead of FOMC Decision^[6]. While these patterns historically correlate with bullish outcomes, analysts caution that the current environment is shaped by unique factors, including U.S.-China trade tensions and Federal Reserve policy uncertainty V-Shaped Recoveries Historically Bullish for Bitcoin as Market Rapidly Retakes $61,000^[4].

In conclusion, Bitcoin's V-shaped recovery hinges on its ability to maintain key support levels and convert consolidation into sustained upward momentum. While technical and institutional factors offer some optimism, the interplay of whale distributions, macroeconomic risks, and derivatives positioning suggests a cautious approach for traders.