⏰ Act Early, Profit Big!
Be among the first to access the newest altcoins. Don't miss out, click now!

Bitcoin May Be Approaching a Local Bottom as Traders Watch Key $114.1K Level for Confirmation


  • Bitcoin retested the $112k demand zone and rebounded by 1.6%, signaling potential price stabilization.

  • Recent on-chain data shows medium-term holders remained inactive during the latest sell-off, indicating strong holder confidence.

  • The liquidation heatmap reveals liquidity clusters around $112k-$114k, supporting the idea of a local bottom formation.

Bitcoin tests $112k support with a 1.6% gain; watch $114.1k for bullish confirmation. Stay updated with COINOTAG’s expert crypto analysis.

Bitcoin Approaches Local Bottom After Testing Key Support Levels

Bitcoin’s price action over the weekend suggests a possible local bottom after it retested the $112,000 support zone and climbed 1.6%. Despite a 1.88% drop during the weekend, volatility remained subdued compared to the sharp 4.5% decline earlier in the week. This price behavior indicates that buyers are stepping in near critical demand levels, potentially halting further downside.

How Does the Liquidation Heatmap Support a Trend Reversal?

The liquidation heatmap highlights a significant liquidity sweep between $112,000 and $114,000. This zone acted as a magnetic area where stop-loss orders were triggered, absorbing selling pressure. While additional liquidity exists around $106,500, historical patterns show Bitcoin often bypasses some liquidity pockets, as seen in late June when it rebounded after hitting $99,800 without dropping to the $97,000 zone. The sparse liquidity above $114,000 suggests that if Bitcoin can hold above this level, a push toward $120,000 is plausible.

Bitcoin Liquidation Heatmap

Source: CoinGlass

What Do On-Chain Metrics Indicate About Bitcoin’s Current Trend?

On-chain data from spent output age bands reveals that younger coins, held between 1 day and 3 months, were predominantly moved during the recent price dip to $112k. In contrast, medium-term holders (3 to 12 months) showed limited activity, suggesting strong conviction among holders not to sell amid short-term volatility. This behavior often precedes price stabilization and potential upward momentum.

Bitcoin Spent Output Age Bands

Source: Glassnode

How Does the Fear and Greed Index Reflect Market Sentiment?

The Bitcoin Fear and Greed Index recently dropped sharply, reflecting increased market caution. However, similar patterns in June saw the index dip to neutral and briefly to fear levels before recovering. This cyclical sentiment shift often precedes price rebounds, indicating that the current market mood could be setting the stage for a bullish swing.

Bitcoin Fear and Greed Index

Source: Glassnode

What Are the Key Indicators for Confirming a Bitcoin Reversal?

The primary confirmation for a Bitcoin trend reversal would be a sustained break and hold above the $114,100 resistance level. This would signal that bulls have regained control and could propel the price toward the next target near $120,000. Traders should monitor volume and volatility closely, as increased activity would support the validity of this breakout.

What Does the 4-Hour Chart Reveal About Market Structure?

The 4-hour chart currently shows a bearish market structure with below-average volume and muted volatility over the weekend. These conditions typically do not favor immediate trend reversals. However, consolidation near $114,000 could precede a bullish breakout if buying pressure intensifies.

Bitcoin 4-hour Chart

Source: BTC/USDT on TradingView

Frequently Asked Questions

What is the significance of Bitcoin testing the $112k support level?

Testing the $112k support level indicates that Bitcoin is finding buying interest at a critical price zone, which may prevent further declines and set the stage for a price rebound.

How likely is a Bitcoin price reversal in the near term?

A reversal is possible if Bitcoin breaks and holds above $114.1k, supported by on-chain data and liquidity patterns, though minor dips cannot be ruled out.


Key Takeaways

  • Bitcoin retested $112k support: Price rebounded 1.6%, indicating potential stabilization.
  • On-chain data shows medium-term holders inactive: Suggests strong holder conviction amid recent volatility.
  • Liquidity clusters between $112k-$114k: Support a local bottom and possible bullish reversal.

Conclusion

Bitcoin’s recent retest of the $112,000 support zone and subsequent price bounce highlight early signs of a local bottom. On-chain metrics and liquidity heatmaps reinforce this outlook, although cautious traders should watch for a confirmed break above $114,100 to validate a bullish trend reversal. COINOTAG will continue monitoring these developments to provide timely updates for crypto investors.


Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Justin Sun’s TRON Founder Launches Blue Origin New Shepard Spacecraft, Supporting Global STEM Education

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Whale AguilaTrades Faces $12,000 Loss on 40x Leverage Bitcoin Long After $40M Gains

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Kuvi.ai Secures $700,000 Seed Funding to Revolutionize AI-Driven Crypto Trading

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Surges to $114,000 Mark with 0.34% 24-Hour Gain, Market Update August 3rd

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Justin Sun’s New Shepard Launch Tonight: Blue Origin to Livestream Historic Spaceflight

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

XRP May Face Resistance Near $3.25 as Volume and Momentum Suggest Potential Upside

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum Sees Possible Increased Outflows From Centralized Exchanges Amid Short-Term Price Volatility

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum Could Be a Key Beneficiary of Pro-Crypto GENIUS Act Amid Short-Term Price Decline

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Shiba Inu Shows Signs of Stagnation and Possible Oversold Conditions Amid Low Whale Activity

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Solana (SOL) Faces Potential Further Decline Amid Binance Sell-Off and Long Liquidations

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Dogecoin Price Drop Leads to Partial Liquidation of Large Leveraged Position, Institutions Increase Accumulation

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Solana Near $164 Faces Short-Term Risks Amid Long-Term Bullish Cup-and-Handle Potential

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img