Bitcoin Reclaims $115,000 Mark on Strengthening Market Momentum
Bitcoin (BTC) advanced 1.5% on Friday, trading above the $115,000 threshold. Onchain metrics and technical indicators suggest the cryptocurrency is gaining firmer footing for a potential upward trajectory, according to blockchain analytics firm Glassnode.
Derivatives Markets Influence Bitcoin’s Price Dynamics
Despite subdued spot market demand and weakening inflows into Bitcoin ETFs, derivatives markets have played a pivotal role in stabilizing BTC’s price. Glassnode’s Week Onchain report highlights that futures trading activity has absorbed recent selling pressure, particularly across major exchanges such as Binance and Bybit.
The volume delta bias, which measures the net buying versus selling pressure, showed recovery during Bitcoin’s rebound from $108,000, signaling a reduction in seller dominance. This shift underscores the importance of derivatives positioning in navigating a market environment characterized by low spot liquidity.
Options open interest (OI) reached an all-time high of $54.6 billion, up 26% since early September. Historically, peaks in options OI have coincided with Bitcoin’s rallies to new highs, as seen in mid-August when BTC surpassed $124,500.
Glassnode notes a clear bias toward call options over puts, indicating a market sentiment that is broadly bullish yet cognizant of downside risks. The balanced structure of futures basis and options positioning contrasts with previous overheated phases, suggesting a more sustainable advance.
Critical Price Levels: Resistance and Support Zones
Bitcoin currently faces resistance between $116,000 and $121,000, a major supply zone it must overcome to extend its recovery toward previous all-time highs. Holding above $115,000 is essential for sustaining upward momentum.
On the downside, support areas include the 50-day simple moving average around $114,500 and the 100-day SMA near $112,200. Additional support clusters exist between $113,500 and $112,000, as well as a local low at $107,200 reached in early September.
Pseudonymous trader KillaXBT noted that Bitcoin is approaching a key pivot level near the August monthly open at $115,700, which could influence trend direction and price action in the near term.
Potential for Short Squeeze and Price Acceleration
Data from CoinGlass reveals liquidity clusters between $116,400 and $117,000. A decisive break above this zone may trigger a short squeeze, compelling short sellers to cover positions and potentially driving the price toward $120,000.
Conversely, strong bid orders near $114,700 may provide a buffer against downward moves, though sustained pressure below this level could challenge the recovery.
Disclaimer: This article does not constitute investment advice. Market participants should perform their own due diligence before making trading decisions.
FinOracleAI — Market View
Bitcoin’s recent climb above $115,000, supported by robust derivatives activity and record options open interest, signals a positive short-term outlook. The derivatives market is absorbing selling pressure, creating a more balanced trading environment compared to previous overheated phases. Key resistance between $116,000 and $121,000 will be critical to watch; a break above could fuel a short squeeze pushing BTC toward $120,000. However, risks remain if support levels near $114,500 fail, potentially leading to a retracement. Investors should monitor derivatives positioning and liquidity clusters closely for early indications of trend shifts.
Impact: positive
