Bitcoin Tests $112,000 Support Level as Analysts Monitor Signs of a Rebound Toward $120,000

Bitcoin defends $112,000 support as traders eye a rebound toward the $120,000 resistance.

Whale sale of 24,000 BTC triggered a $4,000 drop, adding pressure to market sentiment.

ETF outflows of $1.17B and $264M liquidations drive heightened volatility in BTC markets.

Bitcoin continues to test the key $112,000 support level, a zone that traders are watching closely for signs of recovery. Bitcoin holding the $112,000 mark is all that’s needed for a rebound toward $120,000. At the time of writing, BTC was trading at $111,735.

Price Levels and Market Trends

On the four-hour chart, Bitcoin has faced repeated rejection near $123,000, with $117,600 acting as strong resistance during recent rallies. The $112,000 level has served as a vital demand area, with buyers stepping in to maintain price stability. According to Martinez, Bitcoin has bounced off this support multiple times over the past month.

If Bitcoin holds above $112,000, it could open the path toward retesting $120,000, which remains a critical resistance point. However, a failure to defend this level could push the price into the $111,000–$110,500 range. Data shows Bitcoin trading volume reached $45.26 billion in 24 hours, with the weekly decline standing at -1.6%.

The broader market has also faced pressure, with global crypto market capitalization falling to $3.88 trillion, down $130 billion in a single day. Ethereum, the second-largest cryptocurrency, traded at $4,659 with a weekly drop of -2.89%.

Whale Transactions and ETF Outflows

Whale activity has fueled sharp moves in recent days. According to an observation by Crypto Rover, a single wallet transferred 24,000 BTC worth $2.7 billion, causing a $4,000 drop within minutes. Despite this sale, the address still holds 152,874 BTC, valued at more than $17 billion.

ETF flows have added more pressure. Data from Soso Value showed Bitcoin spot ETFs recorded $1.17 billion in net outflows between August 18 and 22. BlackRock’s iShares Bitcoin Trust saw $615 million in redemptions, while Ethereum ETFs recorded $238 million in outflows.

Source: Coinglass

According to Coinglass, Bitcoin derivatives markets also reported surging activity, with $264.04 million liquidated in 24 hours, mostly from long positions. Rising volume and open interest indicate continued volatility as investors watch the $112,000 support zone.

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