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Bitcoin holds above $112,000 after sharp liquidations
Bitcoin reclaimed ground above the $112,000 mark and is trading just under $113,000 after a recent bout of mass liquidations that pushed BTC below $110,000. The $1.5 billion forced-liquidation event erased roughly $110 billion in market value and sent prices as low as $111,998 before partial stabilization. Despite the bounce, short-term momentum remains fragile and traders are watching key technical levels closely.
Key support and resistance levels
On-chain research firm Matrixport identifies immediate support near $109,000 and warns the 21-week moving average — currently around $109,899 — acts as a critical border between bull and bear regimes. As long as Bitcoin holds above that moving average, Matrixport says the broader bull structure is intact. Conversely, a decisive break below could open the door to a deeper correction.
For a clear bullish turn, BTC needs to break and hold above the $114,000–$115,000 resistance zone. A successful breakout could send Bitcoin toward a retest of $117,000. If BTC fails to retake $114,000, expect consolidation between $111,000 and $113,000 and an elevated risk of further downside.
Indicators and market sentiment
The 30-period moving average sits near $112,524 and is acting as short-term resistance. The Relative Strength Index (RSI) recently climbed out of oversold territory and is approaching the neutral 50 level, signaling that selling pressure has eased and buyers are returning cautiously. However, the RSI has not yet produced a strong bullish divergence; a sustained move above 60 would provide an early technical cue for a broader rally.
Matrixport also highlights an unusual market structure: three concurrent mini bull markets within the larger cycle — a pattern last seen during the 2020–2021 uptrend but with fewer simultaneous bull phases. Traders and investors should monitor on-chain metrics and moving averages closely to gauge whether a relief rally can evolve into a sustained uptrend.
Bitcoin price chart depicting a slow rise that could lead to a rally
Overall, Bitcoin retains room for a short-term relief rally, but confirmation depends on reclaiming and sustaining levels above $114,000 while holding crucial support near $109,899. Until those conditions are met, sentiment favors cautious optimism rather than a confirmed bull reversal.
Source: crypto
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