Bitcoin Support Holds at $109.5K With Bullish Breakout

Key Insights:

• Bitcoin tested $109.5K-$111.5K support, holding this level may lead to a bullish recovery.
• Market shows bear dominance, but a return above $117.7K could restore bullish momentum soon.
• Whales sold 147,000 BTC since August 21, yet long-term trend still favors potential Q4 highs.

Bitcoin (BTC) has recently shown signs of holding steady at key support levels. The cryptocurrency is facing significant price movement as it stays around $109.5K, with many analysts predicting a possible breakout toward higher levels. The general outlook remains optimistic for Bitcoin’s price to eventually rise to $135K in the near future.

Bitcoin Holds Crucial Support at $109.5K

Bitcoin’s price recently tested a critical support zone between $109.5K and $111.5K. According to analysts, maintaining this level is essential for any potential bullish recovery. 

This support is seen as a key threshold that will either confirm or challenge Bitcoin’s upward momentum in the coming weeks. Breaking this support could lead to further declines.

As long as the $109.5K level holds, there is optimism for Bitcoin’s next move with support levels like this often play a pivotal role in determining the future direction of the market. If this level is maintained, Bitcoin could soon push toward the next target of $118K.

Shift in Market Sentiment

Market sentiment has shifted slightly, with some signals indicating bear dominance. The composite index recently fell below the −0.4 threshold, pointing to bearish market conditions. 

Axel Adler Jr., a market analyst, observed that “the market has transitioned to a corrective range-bound mode, with bounces acting as relief rallies rather than trend restarts.” Despite this shift, there are still expectations of a bullish reversal.

If Bitcoin can hold the $109.5K support and return to higher levels, the structure would move back into a bullish regime. Analysts believe the key resistance levels at $117.7K and above are within reach if the market’s tone shifts in favor of the bulls again.

Whale Activity and Selling Pressure

Meanwhile, recent whale activity has also raised concerns over Bitcoin’s short-term price action. Whales have been net selling, with a decline of 147,000 BTC since August 21. Julio Moreno pointed out that the total balance of Bitcoin holdings is declining at the fastest monthly rate of the cycle.

This selling pressure could weigh on Bitcoin’s price in the short term, especially if whales continue to offload large amounts of Bitcoin. However, as Bitcoin remains above its key support level, many analysts still believe that the long-term trend remains upward, with new all-time highs potentially coming in Q4 of this year.

Despite the challenges, Bitcoin’s market structure and price action continue to suggest that the cryptocurrency is gearing up for potential upward movement. If the current support level holds and buying momentum picks up, a move toward $135K may be on the horizon.