Key Takeaways
Why is Bitcoin holding $110k important now?
It signals resilience, with Funding Rates at 0.006 and potential $301 million short liquidations on CEXs.
What’s next for BTC price action?
Reclaiming SMA200 at $113,691 could unlock $118,941 resistance, with upside paths targeting $120k–$140k by October.
After holding below $110k for two days, Bitcoin [BTC] successfully reclaimed it and jumped to $112k before slightly retracing.
At the time of writing, BTC was trading at $111,832, representing a 2.21% daily increase. On the weekly chart, it slipped 1.12%.
Despite volatility, market sentiment appeared to stabilize.
Market sentiment holds steady
Interestingly, while Bitcoin has recently faced challenging weeks, market participants are yet to turn overly bearish. Inasmuch as so, the Fear and Greed Index registered 50 at press time, signaling neutrality.
Source: Bitbo
As such, most market influencers shared an optimistic view of the market in the coming days. Thus, social media posts emphasizing the need to defend $110k surged.
Crypto Rover shared one such post. He posited that Bitcoin must hold above $110k-$112k, which will set the market for an upswing.
At the same time, others such as Trending Bitcoin also shared long-term projections, eyeing a rally between $160k-$170k.
These social media posts indicate that Bitcoin will rebound if key support levels hold, with October resulting in more gains.
Source: Trending Bitcoin on X
Futures hint at a short squeeze
While influencers eyed rallies, Futures markets signaled recovery. BTC’s Funding Rates turned positive on the 29th of September after two negative sessions.
Source: CryptoQuant
As of press time, the Funding Rate was 0.006, suggesting that investors’ long positions had recovered significantly.
If the demand for longs holds, it will result in significant upward pressure on the BTC price. If it does, the short will get liquidated.
If BTC retests $113k, cumulative short liquidation intensity on major CEXs could reach $301 million, fueling momentum toward $120k.
Source: CoinGlass
Buyers gain ground on CEXs
Even more importantly, investors on centralized exchanges (CEXs) had turned bullish. According to Axel Adler, Bitcoin’s 30-day Netflow remained negative at -170k BTC.
Source: CryptoQuant
This implied that 170k BTC had flowed out of exchanges compared to inflows. When outflows exceeded inflows, buyers dominated.
Historically, negative Netflow aligned with reduced selling pressure, often preceding higher prices.
Bitcoin price action — Key levels!
According to AMBCrypto’s analysis, BTC experienced a shift in sentiment, with bulls dominating the CEXs and Futures market.
Therefore, these market conditions position BTC in a favorable position for more gains in the days to come. It must first reclaim the 200-day SMA at $113,691 and the Bollinger Band at $114,003.
Source: TradingView
Breaking these levels would set up a test of $118,941, the Bollinger upper band. Sustained strength could push BTC toward $123,852.
If October follows historical Q4 trends, BTC could target a new ATH, with $130k as a base and $140k as the bullish case.