Bitcoin May Rebound to $120K if $112K Support Holds
Bitcoin’s near-term trajectory hinges on the $112,000 support level. If this zone holds, a Bitcoin rebound toward $120,000 becomes increasingly likely; a breakdown, however, could drive prices lower to $111,000–$110,500. Selling pressure has mounted after a whale transfer of 24,000 BTC and net ETF outflows totaling $1.17 billion from August 18–22. Derivatives liquidations reached $264 million in the past 24 hours, underscoring elevated volatility. On-chain data and price action reveal repeated rejections near $123,000 and resistance around $117,600, while buyers have defended $112,000 multiple times this month. Ethereum also weakened, trading near $4,659 with a 2.9% weekly decline. Traders should monitor volume, open interest, ETF flows and large transfers, use disciplined risk management and set stops around $110,500–$111,000. Lucrative short-term Bitcoin rebound opportunities will depend on the strength of $112,000 support.
Neutral
The market outlook is neutral because Bitcoin’s ability to reclaim the $112,000 support zone will dictate its next move. Historically, whale sales and ETF outflows have triggered sharp downturns, as seen when large BTC transfers combined with institutional redemptions caused rapid price drops. However, consistent buyer defenses at $112,000 suggest strong demand that could fuel a rebound to $120,000. Elevated derivatives liquidations and resistance near $117,600–$123,000 add bearish risk, while a clear hold of $112,000 would support bullish momentum. Short-term volatility is likely high, but the ultimate direction depends on the sustainability of this key demand level. Traders should balance both scenarios and adjust positions according to on-chain and flow data.