Bitcoin News Today: Bitcoin Rebounds 1.6% as $114,100 Becomes Key Reversal Confirmation Level

Bitcoin’s price action over the weekend has sparked renewed interest among traders, with the cryptocurrency retesting the $112,000 support level before rebounding 1.6%. The move has led to speculation that a local bottom may be forming, with market participants closely watching the $114,100 level for confirmation of a potential bullish reversal. While the price dipped 1.88% over the weekend, volatility remains subdued compared to earlier in the week, suggesting that buyers are stepping in at key demand levels [1].

The liquidation heatmap reveals a notable liquidity cluster between $112,000 and $114,000, which appears to have absorbed selling pressure by triggering stop-loss orders. This liquidity sweep has created a magnetic zone that could support a reversal if Bitcoin manages to hold above $114,100. Historical data indicates that Bitcoin has bypassed certain liquidity pockets before, as seen in late June when the price rebounded from $99,800 without dropping to the $97,000 level. If the current pattern follows a similar trajectory, the next target could be around $120,000 [1].

On-chain metrics further reinforce the possibility of a price stabilization. Recent data shows that younger coins—those held between one day and three months—were predominantly moved during the recent dip to $112,000. In contrast, medium-term holders (those holding for 3 to 12 months) remained largely inactive, indicating strong confidence among longer-term investors. This behavior typically precedes price consolidation and potential upward momentum [1].

Market sentiment, as reflected in the Bitcoin Fear and Greed Index, has also shifted toward caution, with the index dropping sharply in recent days. Similar patterns were observed in June when the index dipped to neutral and briefly hit fear levels before recovering. These cyclical shifts in sentiment often precede price rebounds, suggesting that the current bearish mood could be setting the stage for a bullish swing [1].

The 4-hour chart currently shows a bearish market structure, characterized by below-average volume and muted volatility over the weekend. While these conditions do not strongly favor an immediate trend reversal, a consolidation phase near $114,000 could precede a breakout if buying pressure intensifies. Traders are advised to monitor volume and volatility closely, as these indicators can confirm the legitimacy of a breakout above the $114,100 level [1].

In conclusion, Bitcoin’s recent price behavior suggests the market is at a critical juncture. A sustained break and hold above $114,100 could signal that bulls have regained control, potentially leading to a move toward $120,000. With on-chain data and liquidity patterns aligning with a local bottom formation, the cryptocurrency market is poised for a potential trend reversal, though traders should remain cautious until confirmation is clear [1].

Source:

[1] Bitcoin May Be Approaching a Local Bottom as Traders Watch Key $114.1K Level for Confirmation - https://en.coinotag.com/bitcoin-may-be-approaching-a-local-bottom-as-traders-watch-key-114-1k-level-for-confirmation/