Bitcoin Holds $112k–113k Range as Rebound Signals Emerge || Daily News
Market remains fragile, but divergences hint at recovery potential
🪙 Crypto Market Update
Bitcoin is holding within the 112,000–113,000 USD support band after yesterday’s steep drop. While the pullback looks deep, this kind of shakeout is often seen before the next bullish leg.
Later today, Fed Chair Jerome Powell and other officials speak, which could provide a short-term catalyst. However, given the timing right after last week’s meeting, fresh policy signals may be limited.
Interestingly, mainstream market commentators have turned negative on crypto—a sentiment shift that has historically marked market bottoms.
Altcoins Under Pressure
Ethereum: Repeated failures at the 4,650 USD level have weighed on sentiment. A move towards the 4,000–3,600 USD zone cannot be ruled out before stabilization.
Solana: The sell-off has been sharper than expected, but some traders are eyeing the 205 USD level as a potential entry, since it was previously a major support/resistance area.
Bullish Clues
On-chain activity shows positive divergences, with user activity rising even as prices dipped.
Momentum indicators also signal early signs of exhaustion in selling pressure.
Funding rates for Bitcoin have turned deeply negative, showing an overcrowded short trade that could fuel a sharp rebound if sentiment flips.
Margin traders are heavily short, setting up the possibility of a short squeeze.
Bearish Risks
The drop has been too deep for some bullish patterns to remain textbook valid—they can still play out, but downside risk has increased.
112,000 USD is now the line in the sand. A clean break lower would likely send BTC back into the broader 112k–98k range.
Market momentum gauges show bearish strength is still in control, and trend-following signals suggest recovery may take a few more days.
A large cluster of liquidations sits between 111,000–110,000 USD, meaning a final washout remains possible.
Bigger Picture
Despite the pullback, the broader re-accumulation structure remains valid as long as BTC stays above 112,000 USD. The reset in “supply in profit” metrics also provides fresh room for an eventual rally.
📊 Technical Levels to Watch
Key Support: 112,000 USD
Immediate Resistance: 114,300 USD (50-day MA)
Rebound Targets: 115,000 → 117,000 USD
Breakdown Risk: Below 112,000 USD → 110,000 USD and deeper
🔑 Key Takeaways
Bitcoin defending 112k is critical—below this level, risks expand quickly.
Altcoins remain weak, but levels near ETH 4,000 and SOL 205 could attract buyers.
Deeply negative funding rates and heavy short positioning set the stage for a possible sharp rebound.
Recovery above 115k–117k is needed to restore confidence.