Bitcoin Price News: BTC Bounces Off Key Support as ETFs Capture $400M

Bitcoin (BTC) has gone up by 1.4% in the past 24 hours after bouncing strongly off the $110,000 area.

The beginning of altcoin season may have triggered a tactical rotation to Ethereum (ETH), Solana (SOL), and BNB Coin (BNB) but that does not mean that Bitcoin has realized its full upside potential for this cycle.

Exchange-traded funds (ETFs) linked to the top crypto have brought in $410 million in net inflows since the week started despite the token’s latest retreat.

Paired with what seems to be an ongoing consolidation in the daily price chart, investors may be accumulating tokens in anticipation of the next leg up.

Open Interest in Bitcoin Futures – Source: CoinGlass

The futures market is still hot too as open interest (OI) expressed in BTC remains high compared to historical levels. Although OI has dropped by around 4% since it hit a record of 748,000 tokens ($84 billion) on August 24, they experienced a strong bounce and has already reached a magnitude seen in only 13 days of the past 12 months.

This indicates that buying interest is recovering and could signal the beginning of another rally for BTC.

BTC Bounces Off $108K with Strong Volumes

The daily chart shows that BTC found a floor at $108,000 to be precise in the past few days. After various days of small movements that indicated accumulation, the price jumped to $110K first and it has now seen a strong uptick that is pushing the token near $113K already.

BTC/USD Daily Chart (Bitstamp) – Source: TradingView

Trading volumes in the past 24 hours have exceeded $50 billion already. If volumes reach the $80 – $90 billion range later today as the American session progresses, this would confirm the strength of this uptick and its relevance to determine the trajectory of the price for the next few days.

The Relative Strength Index (RSI) has climbed above the 14-day moving average as well, indicating that positive momentum is gaining traction.

We can see that volumes have increased above the average in the past 4 days as buyers are coming back into the market.

The key support to watch remains the $110K area. A break below this mark could set in motion a much deeper correction to $100K as we anticipated in a previous Bitcoin price prediction.

However, today’s strong bounce favors a move to $125,000 in the near term that would retest a former trend line support and the top crypto’s latest all-time high.

Market Takes Breather as American Session Kicks Off

The hourly chart shows that the American session has started with some strong selling pressure as the price hit $113,000. This is a highly contested area that has acted as both support and resistance in the past.

BTC/USD Hourly Chart (Bitstamp) – Source: TradingView

A drop from these levels could confirm that bullish momentum has temporarily exhausted. However, although the RSI neared overbought levels in this lower time frame, it did not reach extreme levels that justify a bearish short-term outlook.

Depending on what happens next, traders should wait it out a bit to see if this is an attempt to manipulate the price to flush out FOMO buyers and create room for additional demand.

We are coming out of a triple-bottom in this time frame at $117,500. The resulting rally may have reached a local top but there is a demand zone at $111,000 from which BTC could bounce off strongly to resume its uptrend.