Key Insights:
- For the first time in weeks, Bitcoin price broke above $106,000 following reports of an end to the ongoing U.S. government shutdown.
- Bitcoin and the overal crypto market has been turbulent with on-chain insights suggesting veteran BTC holders had entered a selling spree.
- X markets pundit Ali Martinez issued a warning that Bitcoin could reverse towards $56,000 if it spends too much time around $111,000.
Bitcoin price broke above $106,000 for the first time in almost a week as news spread that the U.S. Senate had finally reached a deal to end the 40-day government shutdown. The agreement brought an immediate sense of relief to markets, which had grown uneasy during the longest federal closure in American history.
Bitcoin and the overal crypto market has been turbulent with on-chain insights suggesting veteran BTC holders had entered a selling spree. According to expert researcher Martin Hiesboeck, the sellers are motivated by a need to diversify their BTC portfolio and distribute capital to exchange-traded funds. However, this might also not be perfectly true owing the fact that Bitcoin ETFs have lost nearly $2.1 billion over the last 8 days.
In the meantime, technical indicators show the largest cryptocurrency needs to clear resistance between $106K – $112K. Ali_charts, a popular crypto pundit on X warned the longer that Bitcoin spends around $111,000, the easier it becomes for a bearish reversal to $56,000.
Bitcoin (BTC) Targets $112K Price After Reclaiming $106K
Bitcoin is working its way back toward $106,000 after last week’s sharp drop, and the recovery looks a bit more convincing on the daily chart. Momentum has started to turn, and buyers are finally showing some push again.
The Ichimoku setup is also beginning to firm up. Price has slipped back above the Tenkan and is now pressing against the Kijun—an area that usually tells you whether a rebound has real strength behind it. Bitcoin is still sitting under the broader cloud, but this move hints that buyers are trying to shift the tone of the market.
The first real test sits just overhead. The price levels between $106,300 to $107,600 have stopped several rallies in the past few weeks. A clean break above this zone would open the path toward the upper cloud line near $112,500. That level stands out as the next major target.
However, on-balance volume remains weak. OBV has been sliding since early October, a sign that fresh inflows haven’t fully returned.
A break through the resistance overhead would open room for a move toward $112,000. If it loses $105,000 again, the market could slip back into a slow, uncertain stretch.
The next few sessions should make things clearer. The question now is whether this recovery has the strength to push Bitcoin into a higher trading zone or if it runs out of steam before getting there.
On-chain Data Suggests Whales Are Selling
The latest on-chain data shows a shift in behavior among some of Bitcoin’s oldest wallets. These long-time holders, often called “OG whales,” have been moving large amounts of BTC to exchanges over the past several months. The chart highlights a dense cluster of high-value spent outputs in 2025, marking one of the heaviest periods of distribution seen in years.
TheCoinrepublic recently reported that an early Bitcoin pioneer, Owen Gunden offloaded 3,600.55 BTC, a stack valued at roughly $372 million, marking one of the larger individual moves seen in recent months.
As Bitcoin broke into six figures, long-dormant wallets began to stir. Each spike on the chart marks coins that haven’t moved in years suddenly entering the market again. Historically, such moves signal profit-taking from wallets that have held through multiple market cycles.
Even so, the price has remained surprisingly stable above $101,000 and even reclaimed $106,000. This suggests there is enough demand to absorb the sell-off but not sufficient enough to drive a breakout rally.
However, X markets pundit Ali Martinez issued a warning that Bitcoin could reverse towards $56,000 if it spends too much time around $111,000. Bitcoin’s latest on-chain data from Glassnode reveals a critical point in market psychology. The chart compares the cost basis of long-term holders (LTH), short-term holders (STH), and the overall realized price. Thus, showing a clear picture of where market support and risk may lie.
How Will Bitcoin Price Action Flow From Here
As of early November, Bitcoin trades below the STH realized price of roughly $111,937. This level represents the average cost at which short-term investors last bought their coins. When spot prices stay below this mark for an extended period, it signals growing pressure among newer buyers who are holding unrealized losses. They’re often a prelude to further selling or stagnation.
Meanwhile, the broader realized price, sitting near $56,145, acts as the next significant support zone. This level marks the average cost basis for the entire market. If Bitcoin fails to recover above the STH line soon, a gradual slide toward this midpoint becomes increasingly likely.