Bitcoin Support Zone at $112K Critical for Market Shift

I view the current Bitcoin movement as a typical retracement. However, if we fall below the previous all-time high of $112,000, it would signal a significant shift in market dynamics. In the short term, the stability of the $108,000–$112,000 support zone depends heavily on whether the combined supply from long-term holders taking profits, short-term holders realizing losses, and ETF redemptions remains greater than the demand driven by institutional balance sheets and organic spot market inflows. If this support line holds, I believe we will see a healthy correction that helps remove speculative excess following the ATH rally. Conversely, a decisive break below this level would suggest the breach of a key previous breakout, indicating a fundamental change in Bitcoin's cyclical behavior rather than mere narrative shifts. Such a move could imply that the trend is shifting, potentially signaling the start of a new phase in Bitcoin’s price cycle. Right now, Bitcoin is trading around $114,238, suggesting that it’s testing the upper boundary of this critical support zone. The market will need to consolidate above this level to maintain bullish momentum, but a decline below $112,000 could confirm a deeper correction or trend reversal.