Weekly Close Could Confirm Bullish Retest

Key Points:

• Bitcoin holds $114,724 support as Ichimoku chart signals bullish structure.
• Over $10B in shorts face risk near the $125K level.
• ETFs now hold 1.46M BTC, tightening supply and reinforcing demand.

Bitcoin is trading at $114,840, showing a slight 0.07% gain in the past hour but losses of 0.75% daily and 3.01% weekly. The price recently bounced from the Tenkan line on the weekly Ichimoku chart, with $114,724 acting as key support. 

Analysts note that holding above this level would validate the move and reinforce the bullish outlook, while resistance sits near $119,539. A breakout above $125,000 could open the door for further upside as buyers continue to defend critical weekly levels.

Short Squeeze Risk Builds Near $125,000

Data from Coinglass shows that more than $10 billion in Bitcoin shorts are now at risk. The liquidation map highlights a major cluster of positions near $125,000.

A breakout above this zone could trigger a large short squeeze, forcing bearish traders to cover positions. Such a move would add buy-side pressure and could spark a parabolic rally.

With Bitcoin consolidating near $115k the market now faces a tight range before testing this critical level. The outcome may determine whether Bitcoin continues its bullish trajectory or faces renewed selling pressure.

ETF Demand and On-Chain Support Reinforce Outlook

Institutional demand continues to strengthen as Bitcoin ETFs absorbed 41,000 BTC in August 2025, three times the monthly issuance. This accumulation brings the quarterly total to 91,000 BTC, pushing total ETF holdings to 1,468,330 BTC.

ETFs now control about 7% of the total supply, reflecting steady institutional inflows. If this pace continues, supply dynamics could tighten further, reinforcing the long-term bullish case.

Meanwhile, on-chain data from Glassnode shows strong support between $104,000 and $108,000, where over 1.15 million BTC were accumulated. This densely realized price zone represents one of the strongest support levels of the current cycle.

Such clusters historically provide a cushion during corrections, as large holder bases resist selling pressure. Combined with ETF demand, these support levels contribute to the broader bullish outlook for Bitcoin.