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

Key Points

1. Bitcoin retested the $112,000 support zone and gained 1.6%, indicating potential stabilization.

2. Liquidation heatmap shows significant liquidity between $112,000 and $114,000, suggesting a possible bullish reversal if Bitcoin holds above $114,000.

3. On-chain data reveals younger coins were moved during the recent dip, while medium-term holders showed limited volatility, often preceding price stabilization.

4. The Bitcoin Fear and Greed Index dropped sharply, reflecting increased market caution, but similar past patterns preceded price rebounds.

5. A confirmed break above the $114,100 resistance level could signal a bullish trend reversal, with potential targets near $120,000.