Bitcoin News Today: Can Bitcoin Hold $112K? Analysts Eye $120K Breakout Ahead of Fed Move

Bitcoin's recent dip below $112,000 has sparked optimism among analysts, who see the level as a critical support threshold ahead of the Federal Reserve's upcoming policy decision. The cryptocurrency market, buoyed by a U.S.-China trade framework agreement and growing institutional demand, has seen Bitcoin stabilize near $113,000 while broader crypto markets climbed to $3.83 trillion in value, according to a Coinpedia report. The move follows a weekend rally driven by diplomatic progress in Malaysia, where U.S. and Chinese officials reached "basic consensuses" on tariffs and rare-earth exports, easing global supply chain concerns, a TheStreet report found.

Bitcoin's price action has drawn attention as traders watch for a potential breakout. Analysts suggest that a rebound above $120,000 could open the door to a surge toward $143,000, based on on-chain data and pricing band models, LiveBitcoinNews reported. Current support at $112,000 appears robust, with Glassnode data indicating fresh buyer inflows near $111,000 and sellers clustered around $117,000, BeInCrypto reported. "The dip is a normal pre-FOMC correction," said one analyst, noting that the key resistance at $120,000 must be cleared to sustain bullish momentum.

Ethereum (ETH) has also gained traction, reclaiming the $4,000 level amid heightened speculation around U.S.-China trade talks. Short-term traders have deployed $650 million in leverage around the $4,100 mark, while institutional investors continue to accumulate ETH. Treasury firms now hold 3.2 million ETH, outpacing Bitcoin's corporate holdings, reflecting growing demand for Ethereum's yield-bearing features post‑Proof‑of‑Stake transition, according to Yahoo Finance.

The broader market has seen mixed signals. While Bitcoin's dominance remains steady at 57.7%, altcoins like XRP and Solana (SOL) have benefited from renewed optimism. XRP surged to $2.64 after a 11% weekly gain, while Solana secured a partnership with Western Union to expand stablecoin adoption, according to an FXStreet report. However, institutional demand for Bitcoin has waned slightly, with inflows dipping below 1,000 BTC/day compared to 2.5k BTC/day during earlier rallies, as reported by BeInCrypto.

Market participants are also eyeing regulatory developments. The approval of the first U.S. spot Solana ETF (BSOL) drew $69.5 million in inflows on its debut, signaling growing institutional confidence in crypto assets, TradingView reported. Meanwhile, Visa's expansion of stablecoin support across four blockchains underscores the asset class's integration into traditional finance.

As the Fed's policy decision looms, traders remain cautious. Bitcoin's open interest has declined by 2.10%, but over 60% of Binance traders still anticipate upward movement. The market's next move will likely hinge on whether Bitcoin can sustain its position above $112,000 and capitalize on the post‑FOMC environment, InvestorsHangout noted.