Bitcoin's current price remains above the significant $112,000 support level following its recent recovery.

In the world of cryptocurrencies, Bitcoin has been making headlines with its recent price movements and market dynamics. Here's a roundup of the key developments:

Bitcoin's Cost Basis Distribution (CBD) shows a marked contrast with Ethereum, indicating denser spot activity and potentially strong buyer conviction. This could be a positive sign for the market's confidence in Bitcoin.

The digital currency has reclaimed its 100-day exponential moving average (EMA-100) at approximately $111,000, a significant milestone for its short-term trajectory. Holding above the EMA-100 is crucial for a bottom to form, according to trader BitBull.

Bitcoin's price has stabilised around $113,000 after a rebound from recent lows near $109,500. This stability is reinforced by the fact that Bitcoin is trading above both its 20-day and 50-day EMAs, reinforcing a short-term bullish bias.

On-chain metrics suggest that large holders continue to accumulate Bitcoin during market pullbacks, a trend that could bode well for the long-term outlook.

Binance and Coinbase, two of the leading cryptocurrency exchanges, have seen increased activity. Binance's 30-day simple moving average net flow reached the highest level since July 2024 on both July 25 and August 25, while Coinbase recorded a consistent net flow spike between August 25-31. These exchange flows indicate a possible redistribution of reserves, potentially setting the stage for upside.

Analysts see potential for further gains if Bitcoin can maintain its current support levels. A decisive close above $113,650 could open the path toward liquidity targets at $116,300, $117,500, and potentially $119,500. However, failing to break above this level could leave Bitcoin vulnerable, with downside targets extending toward the order block between $105,000 and $100,000.

Long-term holder spending has accelerated in recent weeks, but activity remains within cycle norms and well below the October-November 2024 peaks. This suggests that the market is not yet experiencing a significant selling pressure.

Market participants are watching the upcoming 2025 Bitcoin halving event, which historically contributes to bullish market sentiment. Additionally, Bitcoin strategist David Bailey believes another prolonged bear market is unlikely in the near term, citing growing institutional adoption and long-term structural support.

However, the European Central Bank's recent decision to raise interest rates by 0.5% has added volatility to global markets, including cryptocurrencies like Bitcoin. Rumors of draft regulatory guidance from the US Securities and Exchange Commission have created additional speculation about market direction.

Bitcoin's relative strength index (RSI) is currently around 54, leaving room before the market enters overbought conditions. This indicates that the market may still have room to grow before a potential correction.

In other developments, several institutional players have been buying large amounts of Bitcoin. For instance, mining-company MARA Holdings bought 15,574 BTC worth approximately $1.5 billion, and Riot Platforms Inc. expanded its crypto holdings. Moreover, KindlyMD/NAKA increased its Bitcoin holdings by 679 million USD to a total of 5,764.91 BTC through an acquisition. Furthermore, AMDAX's daughter company AMBTS plans to buy around 1% of all existing Bitcoins.

These developments suggest a growing institutional interest in Bitcoin, which could provide a strong foundation for its future price movements. As always, it's essential to keep a close eye on market trends and news to make informed investment decisions.

Bitcoin's current price remains above the significant $112,000 support level following its recent recovery.