Bitcoin Holds $113K Support, Reclaiming $116.7K, Eyes $121K
Bitcoin price has formed a higher low near $113,000, providing critical support for a potential recovery. Analysts note that reclaiming the $116,700 resistance could trigger renewed bullish momentum toward short-term targets at $119,600 and $124,400, with extended upside scenarios near $126,000–$130,000 if momentum persists.
Derivatives data shows trading volume declined by 32.8% to $50.5 billion, while open interest rose 1.1% to $84.35 billion. Options volume fell 59.8% to $1.77 billion. Federal Reserve Chair Jerome Powell’s Jackson Hole speech sparked a near-4% rally in Bitcoin. This move liquidated roughly $379.9 million in short positions, according to Coinglass. Market strategist Michael van de Poppe highlighted the sudden uptrend.
Technical analysis on the 4-hour chart indicates steady downward sequences interrupted by rebounds from approximately $112,666. Support at $113,000 remains key. A confirmed higher low and a break above $116,700 is needed to restore bullish market structure.
Traders should watch the $116,700 level for confirmation. Rising open interest amid lower volume suggests positional buildup that may amplify future price swings. Bitcoin’s volatility remains elevated, underscoring the importance of risk management in crypto trading.
Bullish
This update signals a bullish outlook because Bitcoin has established a higher low at $113K, a classic indicator of strengthening demand. Reclaiming the $116.7K resistance would confirm a shift in market structure and likely propel prices toward $121K, mirroring past rallies following major Fed events. The Powell-driven 4% rally and $380 million in short liquidations echo similar volatility spikes in previous Jackson Hole reactions, which often preceded extended uptrends. Rising open interest amid falling volume suggests traders are building positions, increasing the potential for amplified moves when volatility returns. In the short term, a break above $116.7K could trigger a relief rally and test levels near $119.6K and $124.4K. Over the long term, holding above the higher low would support a broader bull cycle, provided risk management remains in focus amid elevated volatility.