Bitcoin’s price climbs above $114,000, signaling a recovery after recent corrections. Yet on-chain indicators warn of risks ahead, as weak capital inflows and declining illiquid supply could limit further upside momentum.
On October 27, 2025, the global crypto market witnessed a solid rebound as Bitcoin (BTC) surged to $114,987, up 3.22% in 24 hours. The move came after a week of cautious trading, suggesting that investors are gradually regaining confidence following previous corrections.
Market data show that Bitcoin touched a high of IDR 1.921 trillion (~$114,987) and a low of IDR 1.853 trillion, while 24-hour trading volume jumped 84% to IDR 786.54 trillion. Bitcoin’s market capitalization now stands near IDR 38,111 trillion (~$2.4 trillion), reinforcing its dominance across the crypto landscape.
Despite the recent uptick, analysts have voiced concerns over a notable decline in illiquid Bitcoin supply—coins held long-term and seldom moved.
Since mid-October, more than 62,000 BTC have been transferred out of dormant wallets back into circulation. This signals that long-term holders are starting to reposition, possibly taking profits or reallocating assets.
As more “locked” Bitcoin re-enters the market, overall liquidity rises, which often leads to greater short-term selling pressure. Historically, steep declines in illiquid supply have coincided with periods of weaker price sustainability.
Unless fresh capital from both retail and institutional investors flows in to absorb this increased supply, Bitcoin may enter a phase of sideways consolidation or short-term correction.
On the spot market, buy-side momentum remains weak. Momentum traders have largely stepped back, while “dip-buyers”—those who typically accumulate during price pullbacks—appear less aggressive than before.
This imbalance between buyers and sellers is dampening Bitcoin’s upward momentum. Meanwhile, new participants entering the market remain limited, underscoring a lack of fresh capital inflow, which is critical to sustaining a robust uptrend.
From a technical standpoint, $112,500 acts as a crucial support zone.
During trading on October 27, BTC hovered around $112,513, just above that key level. Holding above this threshold is essential for Bitcoin to maintain its recovery trajectory.
If BTC slips below support, the next major defense lies near $108,000. Conversely, a decisive break above $115,000 could open the path toward $120,000, a target many investors are watching closely.
However, analysts caution that without rising volume and strong buyer participation, any breakout attempt could quickly lose momentum.
Federal Reserve Policy:
The Fed’s decision to pause rate hikes provides breathing room for risk assets like crypto. Yet if inflation ticks higher again, the prospect of renewed tightening could pressure Bitcoin prices.
Global Market Sentiment:
Positive developments in U.S.–China trade relations and improving global economic outlooks have bolstered risk appetite, channeling speculative capital back into digital assets.
Institutional Inflows:
Spot Bitcoin ETFs in the U.S. continue to attract steady inflows—an encouraging sign that could support longer-term bullish momentum if sustained.
Retail Investor Behavior:
Despite stronger institutional participation, retail investors remain cautious, especially after the volatile swings of recent months. Their return could reignite a fresh upward leg.
Current analyses suggest Bitcoin has entered a consolidation phase—a period of stabilization after a rally.
This stage may last from several days to a few weeks, depending on new inflows and investor sentiment.
A sustainable breakout will likely require:
Significant new capital inflows to exchanges,
Consistently higher trading volume, and
A clear move above the $115,000 resistance.
If these conditions align, Bitcoin could target the $120,000–$125,000 range in the short term. Otherwise, a retracement to $108,000–$110,000 for further accumulation would be plausible.
Stay calm and patient: Crypto markets are highly volatile; short-term trades during consolidation phases often carry unnecessary risks.
Monitor key levels: The $112,500 (support) and $115,000 (resistance) zones will determine Bitcoin’s near-term direction.
Watch ETF and derivatives flows: These indicators reveal whether institutional liquidity is truly returning to the market.
Diversify holdings: Don’t focus solely on BTC—major altcoins like Ethereum, Solana, and Cardano are also showing promising capital activity.
Bitcoin’s climb past $114,000 is a positive sign for the crypto market, but the path ahead remains challenging. The ongoing consolidation phase could serve as an important foundation for the next major rally—provided that new liquidity returns and sentiment stays constructive.
In an evolving macro environment, Bitcoin continues to stand as the cornerstone of the digital-asset market, symbolizing both investor confidence and the maturity of decentralized finance as a global ecosystem.
1. Can Bitcoin reach $120,000 in the coming month?
Yes, if institutional inflows strengthen and the Fed maintains a dovish stance. However, such a move requires robust volume and sustained demand.
2. Why is the decline in illiquid supply concerning?
It reflects reduced confidence among long-term holders. When these coins move back into circulation, it can signal increased selling pressure and potential short-term weakness.
3. What are the key support levels for Bitcoin right now?
The $112,500 zone is considered a critical floor. A break below could shift short-term momentum bearish.
4. What should investors do during this consolidation phase?
Those already positioned should manage risk and consider partial profit-taking. New entrants may want to wait for stronger confirmation of trend and volume before entering.
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