Bitcoin Eyes $113K Support as Critical Test Looms Ahead of FOMC Decision
Bitcoin (BTC) is trading close to $115,000. It hasn't moved much in the last 24 hours as the cryptocurrency market gets ready for Wednesday
Quick overview
- Bitcoin is currently trading near $115,000, with minimal movement ahead of the upcoming FOMC meeting.
- The $113,000 support zone is critical for Bitcoin's potential to reach new all-time highs or face a significant drop.
- On-chain data indicates strong accumulation at current levels, particularly among mid-sized investors and institutions.
- Technical analysis suggests that maintaining the $113,000 level is essential for a bullish outlook, while a drop below could lead to further declines.
Bitcoin BTC/USD is trading close to $115,000. It hasn’t moved much in the last 24 hours as the cryptocurrency market gets ready for Wednesday’s Federal Open Market Committee (FOMC) meeting. Even if the price has been moving laterally, technical indicators say that the world’s biggest cryptocurrency is getting close to a key moment that could set it on a path to new all-time highs or a bigger drop.
BTC/USD Technical Structure Points to Critical $113K Retest Zone
Market watchers are keeping a careful eye on how Bitcoin acts in the $111,000–$113,000 support zone, which has become a key level for the current bull run. The technical setting is similar to the breakout pattern that worked in Q2, when BTC stayed below the $110,000 resistance level before finally breaking through and rising beyond $120,000 in July.
The Relative Strength Index (RSI) has gotten back above the important 50 level and is now testing it as support. This is a setup that has historically led to more buying. This technical alignment, along with the present price movement, shows that Bitcoin has to stay above $113,000 in order to keep going up.
“The combination of a change in the technical structure and the accumulation of miners gives a positive prognosis. “Bitcoin looks like it will keep going as long as $112K holds,” said crypto analyst ShayanBTC.
UTXO Data Reveals Strong Accumulation at Current Levels
On-chain analytics back up the importance of the $113,000 level even further. The UTXO Realized Price Distribution (URPD) data shows that 5.5% of the total supply of Bitcoin has been bought and sold between $110,000 and $113,000. This is one of the more active trading ranges in the past few weeks. This large number of holders shows that they strongly believe that the current levels are good long-term values.
The trend of accumulating goes beyond just individual investors. Since July 2024, “Shark” wallets that contain between 100 and 1,000 BTC have added almost 1 million BTC to their total holdings, bringing the total to 5.939 million BTC. This consistent rise shows that new mid-sized players are getting more exposure at these pricing levels.
Bitcoin Whale Distribution Creates Supply Relief
Smaller investors are buying more, while bigger investors are selling their shares. Since March 2024, whale wallets (1,000–10,000 BTC) have lost 324,000 BTC, and humpback wallets (≥10,000 BTC) have lost 391,000 BTC. Since last year’s highs, about 715,000 BTC has been put on the market.
Most importantly, this supply has been taken up by newer, smaller players. This is a structural change that makes the foundation stronger for future price increases and explains why the $113,000 level could be one of the last big “discounts” before prices go up again.
BTC Corporate Treasury Demand Continues Growing
Institutional adoption is still a big factor, and MicroStrategy is the company that has the most Bitcoin. The corporation just bought 525 more BTC for almost $60 million, or an average of $114,562 per coin. This brought its total holdings to 638,985 BTC, which is valued more than $73 billion. This continual institutional demand is what keeps Bitcoin’s price floor stable.
Bitcoin Price Prediction and Key Levels to Watch
According to current technical analysis, Bitcoin is in a few important situations:
- Bullish Case: If the price closes over $117,300, it might mean that the market is ready to push for new all-time highs, with the first targets being $118,500 and $120,000+.
- Base Case: The market will stay in the $113,000–$117,000 area while it waits for the FOMC to provide it further information.
- Bearish Case: If the price drops below $113,000, it might start selling off toward $110,500, with more support at $108,000.
The crucial thing to watch right now is if Bitcoin can stay above the $113,000 support level. Because of the robust accumulation patterns, institutional demand, and good technical setup, the present pullback looks more like a healthy consolidation than the start of a significant reversal.
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