Bitcoin Holds Above $110K as Bulls Defend Key Support and Institutional Buyers Return
Bitcoin has been in a state of turbulent yet controlled trading on Thursday, maintaining a position close to $111,000. After a brief dip to $109,600, this level has emerged as a crucial anchor for bullish sentiment. Market analysts are observing a noteworthy pattern often referred to as a triple-bottom structure, which typically indicates a potential trend reversal. Recent data from Bitstamp and Binance showcase solid buying activity in the $109,600 to $110,000 range, highlighting buyers’ strong defense of this vital psychological threshold. Following a recent correction that saw Bitcoin’s market value drop nearly nine percent, both retail and professional investors appear to be returning, as indicated by a marked rise in mid-sized wallet accumulations.
Cointelegraph Markets Pro reports that Bitcoin’s recent price activity has garnered the attention of large market participants viewing this consolidation phase as an opportunity for re-entry, rather than a sign of market breakdown. Analyst Skew noted that “it’s time to lock in again,” as Bitcoin tests its established demand area. Well-known analyst Rekt Capital confirmed that Bitcoin has successfully filled the CME futures gap between $109,680 and $111,310. Historically, filling such gaps often pulls prices towards equilibrium in liquidity, creating conditions favorable for potential trend reversals.
Emerging RSI Divergence Suggests Momentum Shift as Sentiment Stabilizes
Momentum indicators are showing signs of support after an extended phase of bearish negativity. The Relative Strength Index (RSI) is beginning to turn upward from a level of 48, exhibiting a bullish divergence despite Bitcoin’s price hovering near its recent lows. This development suggests a waning of selling pressure and a quiet emergence of buying interest. Market sentiment, which had previously plummeted to a six-month low according to the Crypto Fear and Greed Index, is starting to stabilize. Investors are starting to realize that extreme panic levels often align with local market bottoms, rather than peaks.
Crypto analyst Ted Pillows highlighted that current market sentiment resembles that of March 2020, during the COVID-19 crisis when Bitcoin faced a similar collapse before igniting one of its most robust rallies. Pillows argues that “this doesn’t happen at the top; it happens at exhaustion points when fear peaks.” On-chain data from Glassnode shows that accounts holding between 1 BTC and 1,000 BTC have resumed accumulation. These mid-tier investors—considered strategic traders—are absorbing supply from weaker hands. Concurrently, larger holders who offloaded their assets during the early October downturn are now slowing their selling actions, indicating a potential resurgence of confidence in the market.
Institutions Expand Holdings as Fed Cut Bets Reach 96.7% Probability
While retail sentiment begins to show signs of recovery, institutional positioning is quietly leaning towards optimism. Data from the CME FedWatch Tool suggests a 96.7% probability that the Federal Reserve will roll out a 25 basis point rate cut at the upcoming meeting, reducing rates from 4.25% to 4.00%. Such a reduction would represent the first easing in over a year, potentially unlocking new liquidity across risk assets. Historically, Bitcoin benefits in such conditions—flourishing against the backdrop of a weaker dollar and heightened risk appetite.
Historically, October has averaged a 20% monthly gain for Bitcoin since 2019, prompting traders to speculate that this trend may repeat if monetary policy shifts. Supporting this narrative, Bitwise’s Q3 2025 Corporate Bitcoin Adoption Report revealed that public companies now hold a total of 1.02 million BTC, worth approximately $117 billion, reflecting a substantial 28% quarterly increase. The count of corporations adding Bitcoin to their reserves grew by 38.7% quarter-over-quarter, with 48 new companies stepping into this market. Major holders include Strategy (640,031 BTC), MARA Holdings (52,850 BTC), and Bitcoin Standard Treasury (30,021 BTC).
Technical Landscape: Triple-Bottom Structure Forms Near $109K as Bulls Eye $116K Breakout
The technical analysis paints a scene where two pivotal levels are delineating the market dynamics. Support in the range of $109,600–$110,000 appears robust, sustained by the 200-day moving average aligning closely with this range. A sustained breach below this critical support could lead to downside risk toward $107,300, followed by the next line of defense at $105,000. However, the repeated rejections of prices dipping below $110K signal that demand is sufficiently strong to counter deeper declines.
On the upside, resistance is found between $112,700–$113,000, where the 20-EMA and 50-EMA are starting to converge. A confirmed breakout above this threshold could propel Bitcoin toward $114,600 and $117,600, aligning with Fibonacci retracement levels that previously capped price recoveries. Current market structure shows signs of a potential shift toward higher lows—a necessary precursor to any trend reversal. Should Bitcoin close decisively above $116,200, it could rapidly advance towards $120,000, reigniting the bullish channel established earlier this year.
The open interest across major futures exchanges has seen a sharp decline since the liquidation waves in early October, signaling a process of deleveraging and revised positioning. Reduced leverage minimizes the risk of cascading liquidations, allowing spot demand to lead price direction rather than speculative market moves. This backdrop creates an ideal atmosphere for a slow, sustainable recovery, contingent upon continued buying pressure.
