Bitcoin (BTC) Price: Holding Above Key $112,000 Support Level After Recent Recovery
TLDR
Bitcoin price stabilized around $113,000 after rebounding from recent lows near $109,500
Strong buyer support visible in Cost Basis Distribution data compared to Ethereum
Technical indicators show Bitcoin trading above key moving averages
$113,650 identified as crucial breakout level for continued upward momentum
Exchange flows suggest institutional accumulation and liquidity shift favoring reaccumulation
Bitcoin has shown resilience in recent days, stabilizing around the $113,000 mark after a sharp rebound from lows near $109,500. This recovery comes as the cryptocurrency reclaimed its 100-day exponential moving average (EMA-100), a technical floor near $111,000 that many traders use as a key support level.
The rebound has sparked optimism among analysts who now see potential for further gains if Bitcoin can maintain its current support levels.
Technical indicators currently give mixed but generally positive signals. Bitcoin’s relative strength index (RSI) sits around 54, leaving room before the market enters overbought conditions.
The cryptocurrency is also trading above both its 20-day and 50-day EMAs, which reinforces a short-term bullish bias.
Analysts like trader BitBull have noted on social media that holding above the EMA-100 is crucial for a bottom to form. If Bitcoin can maintain this support, a continued rally could carry its price toward the $117,000 mark.
However, not all market observers share this optimism. Analyst Roman has warned that losing the $112,000 level could open downside targets near $102,000, pointing to a double-top structure visible on higher time frames.
$BTC has reclaimed its EMA-100 level.
This has been very crucial for bottom formation, and for now bulls are still in control.
If BTC holds this level, I wouldn’t be surprised to see a rally towards $116K-$117K level. pic.twitter.com/JTp7P9bSb2
— BitBull (@AkaBull_) August 27, 2025
On-Chain Data Shows Institutional Support
On-chain metrics suggest that large holders continue to accumulate Bitcoin during market pullbacks. This pattern aligns with historical trends where institutions often step in near key support levels.
A notable example occurred in April 2025 when Bitcoin briefly dropped below a long-term trendline before recovering. That rebound coincided with MicroStrategy’s $1.5 billion purchase of BTC.
Recent data from Glassnode highlights Bitcoin’s Cost Basis Distribution (CBD) showing a sharp divergence with Ethereum. While ETH flows remain sparse, Bitcoin spot activity appears denser, with transactions clustering tightly across recent price levels.
This density may indicate strong buyer conviction, which has historically provided more durable support than futures-driven momentum.
Exchange flows also support the bullish thesis. Data from CryptoQuant shows that Coinbase recorded a consistent net flow spike between August 25-31, immediately after its 30-day simple moving average hit the lowest level since early 2023.
Meanwhile, Binance saw its 30-day simple moving average net flow reach the highest level since July 2024 on both July 25 and August 25. These levels have historically coincided with reaccumulation phases before new local highs.
The simultaneous Coinbase trough and Binance peak point to meaningful reserve redistribution, potentially setting the stage for upside.
Key Price Levels to Watch
For Bitcoin’s recovery to continue, it must clear immediate resistance between $112,500 and $113,650. A decisive close above $113,650 would confirm a bullish break of structure on the daily chart and invalidate the descending trendline that has capped price action for the past two weeks.
Such a breakout could open the path toward liquidity targets at $116,300, $117,500, and potentially $119,500.
On the other hand, failing to break above $113,650 could leave Bitcoin vulnerable. Downside targets in this scenario extend toward the order block between $105,000 and $100,000.
Bitcoin briefly dipped to $107,300 on Monday, a level that aligns closely with its short-term realized price, hinting at potential support. From that low, BTC rebounded sharply, breaking above Monday’s $109,900 high during Tuesday’s New York trading session.
The European Central Bank’s recent decision to raise interest rates by 0.5% in a surprise move has added volatility to global markets, including cryptocurrencies like Bitcoin.
Market participants are also watching the upcoming 2025 Bitcoin halving event. Historically, halvings reduce the issuance of new BTC and often contribute to bullish market sentiment.
At the same time, rumors of draft regulatory guidance from the US Securities and Exchange Commission have created additional speculation about market direction.
Long-term holder spending has accelerated in recent weeks, but activity remains within cycle norms and well below the October-November 2024 peaks. This suggests measured distribution rather than aggressive selling.
Bitcoin strategist David Bailey believes another prolonged bear market is unlikely in the near term, citing growing institutional adoption and long-term structural support.
The post Bitcoin (BTC) Price: Holding Above Key $112,000 Support Level After Recent Recovery appeared first on Blockonomi.
Filed under: Bitcoin - @ September 3, 2025 9:25 am