Bitcoin Nears $112K as Recovery Momentum Builds

Bitcoin (BTC) rose nearly 4% in the past 24 hours to trade around $111,346, extending the market’s broader recovery. Despite the bounce, BTC remains down 3.8% over the past month, indicating that the bullish reversal is still unfolding.

Both on-chain and technical indicators suggest that Bitcoin could be preparing for a stronger upside move — provided it breaks through critical resistance levels in the coming sessions.

On-Chain Data Points to Renewed Confidence

The Holder Accumulation Ratio (HAR), which tracks whether investors are adding to or trimming their positions, is signaling growing optimism. After dropping to 52.91% in early October, the ratio has climbed back to 55.53%, showing that more holders are buying again. Historically, readings above 50% imply that long-term investors are in accumulation mode — a bullish indicator.

Similarly, the Net Unrealized Profit/Loss (NUPL) metric, which measures overall market profitability, is turning upward after hitting a three-month low of 0.48 on October 17. With NUPL still below 0.50, the incentive for traders to take profits remains limited, reducing short-term selling pressure.

Signs of a Breakout Forming

On the technical side, Bitcoin is forming a falling wedge pattern, a structure often seen before bullish reversals. Price action shows both trendlines converging downward, with declining trading volume — a classic precursor to a breakout. BTC recently flipped $108,918 from resistance to support and now hovers just below the upper wedge boundary near $112,242.

A decisive daily close above $114,928 would confirm a breakout and could open the way toward $117,615 and $121,440, representing potential gains of 5–9% from current levels.

Downside Risks Remain

If Bitcoin fails to maintain support at $108,918, short-term bullish momentum would likely weaken, with the next key support seen near $103,545, marking the lower boundary of the wedge.

For now, investor confidence appears to be rebuilding as on-chain data and price action both hint that Bitcoin may be entering another accumulation phase — a calm before the next potential breakout.