Bitcoin shows tentative signs of stabilizing and potentially forming a local bottom following a successful retest of the $112,000 support zone, gaining 1.6% from that level. Traders are now closely monitoring the critical $114,100 resistance level, as a confirmed break above it is being viewed as a key confirmation signal for a bullish trend reversal.
Market analysis based on liquidation heatmaps points to significant liquidity clustered between the $112,000 and $114,000 price range. This concentration suggests the market could see a stronger upside push if Bitcoin successfully consolidates above $114,000.
On-chain data provides further context for the recent market movement. Analysis indicates increased activity from ‘younger’ coins during the dip, while holdings belonging to medium-term investors demonstrated limited movement. This pattern often emerges during periods of market stabilization.
The Bitcoin Fear and Greed Index registered a sharp drop, reflecting heightened caution and fear among market participants. However, historical parallels indicate that similar deep drops in sentiment have frequently preceded notable price recoveries.
Should Bitcoin decisively breach the $114,100 resistance threshold, analysts anticipate this could catalyze a broader bullish reversal phase. The next significant price target beyond this level is situated around the $120,000 mark.