Bitcoin’s $112K Support Under Fire – Bull Run Pause or Market Top?

Bitcoin has returned to the key $112K support level, which now faces intense pressure that could either spark a continuation of the bull run or signal a local peak. Currently, Bitcoin is trading at $112,893, with a 1.38% daily gain.

However, trading volume remains moderate at $64 billion, lower than the $300–500 billion volume levels witnessed during peak market activity.

Burak Kesmeci, an analyst at CryptoQuant, confirmed that Bitcoin is now operating within a key $109K–$112K range.

According to Kesmeci, a weekly close above this zone could reinforce the upward trend, while a close below may trigger an accelerated correction.

Bulls vs Bears? Bitcoin’s critical pivot zone at 109K – 112K

“The 109K – 112K range is a critical pivot zone in the short term. A weekly close above this region could strengthen the trend, while closing below it may accelerate the correction.” – By @burak_kesmeci pic.twitter.com/AaM1hMNmNT

The analyst has identified three key price levels deserving attention.

The first is $117.3K, representing short-term resistance where underwater investors may look to exit their positions.

The second is the current $112K level, serving as a short-term decision point that will determine whether prices advance higher or retreat to the third level, short-term support around $92.4K.

Similarly, on-chain analyst Darkfost noted that BTC Supply in Profit has recently fallen below the 90% threshold, a metric that has frequently indicated the onset of corrective phases.

“Bull markets typically coincide with more than 90% of supply showing profits. We have now reached this critical 90% threshold,” Darkfost explained.

Additionally, heavy selling pressure from whales and institutions through ETFs has weakened bullish sentiment.

SosoValue data reveals that U.S. spot Bitcoin ETFs recorded only $81.25 million in net inflows on August 27, a stark contrast to Ethereum ETFs, which attracted $309.48 million during the same time frame.

Glassnode data shows that the Relative Unrealized Loss for Bitcoin investors remains at just 0.5%, well below the >30% levels characteristic of bear market extremes.

This indicates that most holders maintain profitable positions despite mounting short-term pressure.

Additionally, during the recent pullback to $109K, Bitcoin touched the “Oversold” territory on the short-term holder MVRV Bollinger Band.

On the pullback to $109K, $BTC tapped the ‘Oversold’ zone on the short-term holder MVRV Bollinger Band. The last occurrence was at the $74K bottom in April; since then, BTC is up +51%. pic.twitter.com/cN2FXII4SS

The previous occurrence of this condition was at the $74K bottom in April, after which Bitcoin surged over 50%.

Many analysts now view the current situation as a retest phase before the next leg of the bull run commences.

Supporting this thesis, corporate treasuries and companies are accumulating Bitcoin at a rate four times the mining rate, adding approximately 1,755 BTC daily, while only 450 BTC enter circulation through mining.

Bitcoin enthusiast CryptoNewton projects that as long as the price remains above the $112K threshold, subsequent targets include $115K, $118K, and $124K.

The daily BTC/USDT chart displays a clear liquidity-driven pattern. The price recently cleared liquidity near the $124,000 area, establishing a new all-time high before experiencing a sharp reversal.

The RSI is climbing from neutral territory, indicating that momentum is recovering following the selloff.

Key resistance zones ahead include $114,700 and $116,800.

A decisive breakout above $116,800 would clear the path toward $119,500 and potentially establish another attempt at the highs.

Conversely, if price fails at this juncture and reverses, a return toward $111,900 remains viable, with $103,000 serving as the deeper invalidation level.

The 4-hour BTC/USDT chart reveals a distinct structure between buyer and seller territories.

Following a steep decline from the seller zone around $121,000, the price descended into the buyer zone near $111,000 and established support.

The support line and buyer zone provided a foundation for recovery, leading to a breakout attempt through the resistance line.

The price is currently consolidating just above $111,000 while testing the lower boundary of the $112,400 zone, which serves as short-term resistance.

The technical setup suggests that if buyers can sustain momentum above this buyer zone and achieve a clean break through $114,400 resistance, the next target would be approximately $118,000 (TP1), aligning with the projected trajectory.

However, failure to maintain levels above $113,000 would increase the probability of retesting the $109,000 buyer zone.

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