Essential Insights:
Bitcoin may revisit the $111,000–$113,000 range, echoing the breakout pattern noted in Q2.
The URPD indicator reveals that 5.5% of BTC supply is concentrated in the $110,000–$113,000 bracket.
New mid-sized investors have absorbed a whale distribution of 715,000 BTC.
Bitcoin (BTC) has gained nearly 6% in September, challenging its typical bearish trends. After a strong week, it peaked in a significant supply area between $115,600 and $117,300. A strong close above $117,300 could indicate a potential surge toward new peaks.
As the Federal Open Market Committee (FOMC) meeting approaches and interest rate reductions are anticipated this Wednesday, Bitcoin is experiencing a slight correction, dipping below $114,500. Analysts suggest this dip might offer a favorable entry point.
From a technical standpoint, the key retesting zone falls between $111,000 and $113,000, mirroring the structure of Q2. In June, BTC surged from below $100,000 to $109,000, consolidating just below the $110,000 resistance.
Following an initial rejection, the market absorbed liquidity near $105,000 before soaring to new highs above $120,000 in July.
A comparable pattern seems to be forming at present. To maintain the current uptrend, Bitcoin must hold within the $111,000–$113,000 range. Any dip below this level could undermine the bullish outlook, whereas stability here may confirm another structural breakout.
The relative strength index (RSI) supports this perspective, having reclaimed the 50 level and is currently testing it as a support line. Traditionally, this configuration has preceded renewed buying activity, as seen in June.
Crypto analyst ShayanBTC pointed out that miner activities are confirming this positive sentiment,
“The combination of a technical structure shift and miner accumulation offers a promising outlook. As long as $112K holds, Bitcoin seems well-equipped to maintain its momentum.”
Related: Bitcoin daily dip hits 2% as ‘classic’ BTC price movements precede FOMC
New Bitcoin investors are entering the market, says analyst
One reason the $113,000 zone could serve as technical support is the URPD (UTXO realized price distribution) metric, illustrating how Bitcoin supply is distributed by purchase price. Recent data shows that 5.5% of BTC supply has shifted within the $110,000–$113,000 range, making it one of the most actively accumulated areas lately.
In essence, a significant number of holders have established their positions in this range, indicating a belief that this level signifies long-term value.
This accumulation trend is further supported by the activity of wallet cohorts. Since July 2024, Shark wallets (holding 100–1,000 BTC) have added nearly 1 million BTC, boosting their total holdings to 5.939 million BTC. This consistent increase points to the participation of new mid-sized investors.
Bitcoin researcher Axel Adler Jr noted that concurrently, notable distributions have occurred from larger groups. Whale wallets (1,000–10,000 BTC) have decreased their holdings by 324,000 BTC since March 2024, while Humpbacks (≥10,000 BTC) have trimmed their balance by 391,000 BTC.
In total, approximately 715,000 BTC have entered the market since last year’s peaks.
Importantly, this supply has largely been absorbed by newer, smaller participants, indicating a structural shift that emphasizes why the $113,000 level might represent one of the last significant “discounts” before a new rally.
Related: Traders suggest Bitcoin’s ‘bullish’ weekly close sets the stage for a $120K BTC price
This article does not provide investment advice or recommendations. Every investment decision carries risks, and readers are encouraged to perform their own research before proceeding.
