The recent rise in Bitcoin prices has led to significant buying activity in the range from $112K to $114K. Despite such fluctuations, current support zones remain in question.
Increase in Bitcoin Buying Activity
Bitcoin saw a sharp increase in buying when its price rebounded from $112,000 to $114,000. According to Glassnode, around 120,000 BTC changed hands during this move, indicating that some traders view the dip as a chance to accumulate.
Weak Support Zones at $110K–$116K
Despite recent activity, the $110,000 to $116,000 price range does not have a solid basis of support. Support is formed when a significant number of traders are willing to buy at certain levels, creating a buffer against price declines. Glassnode's on-chain analysis suggests that while the buying volume is notable, it is insufficient to establish long-term support. If Bitcoin were to return to these levels without an increase in demand, the price could fall lower.
Potential to Strengthen Bitcoin's Support Zone
For the $110K–$116K range to become a true support zone, sustained demand is essential. This could arise from institutional interest, retail trading enthusiasm, or broader market optimism driven by macroeconomic events. Additionally, increased trading volume near these price levels over time would help solidify them as a security net for BTC. Until such demand emerges, traders may view this range as fragile, meaning volatility could remain high in the short term.
In summary, despite buyer activity, the current state of the Bitcoin market presents high risks. Sustainable demand will create solid support, but until then, the situation remains unstable.
