Key Takeaways:
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Bitcoin price rallied back to $113,000 prior to the U.S. stock market opening, sparking conversations about a potential mirroring of gold’s price action.
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The $113,000 level is now being considered a recommended entry point for buying Bitcoin, although market sentiment is mixed.
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Analysis of market depth suggests the possibility of a significant short squeeze occurring around the $115,000 price point.
Bitcoin (BTC) experienced a resurgence, reaching $113,000 on Tuesday as traders re-evaluated their perspectives on its price trajectory.
Bitcoin’s Price Increase Faces Scrutiny
Real-time market insights from Cointelegraph Markets Pro and TradingView indicate that Bitcoin achieved new local highs of $113,279 as Wall Street trading began.
The BTC/USD pair extended gains from a higher low established over the weekend, successfully maintaining support above $110,000.
Analysts are now observing a potential opportunity for buyers to launch a stronger and more sustained challenge against existing resistance levels.
According to Michaël van de Poppe, a crypto trader, analyst, and entrepreneur, “Here we go!” in a post on X.
Van de Poppe pointed out that Bitcoin had surpassed the 20-day simple moving average (SMA) close to $111,500 and had also reclaimed the significant $112,000 level.
He further commented, “Gold is hitting new record highs –> $BTC is likely to follow,” referencing Bitcoin’s tendency to imitate price increases in XAU/USD after a short period.
Another trader, Crypto Tony, suggested that $113,000 represents an attractive purchase point.
“A daily close above $113,000 constitutes a long position,” he stated to his followers on X.
However, some remain skeptical. Crypto investor and entrepreneur Ted Pillows highlighted the limited spot market activity as a reason to question whether the recent uptrend can be sustained.
$BTC current rally is mostly perps driven.
OI is up, and the funding rate is up, while the Coinbase premium is still neutral.
Until strong spot demand arrives, the rally won’t be sustainable. pic.twitter.com/ydlSTODT8x
— Ted (@TedPillows) September 9, 2025
Potential Liquidity Squeeze Looms for Bitcoin
An analysis of order book liquidity on cryptocurrency exchanges shows a significant cluster of sell orders just above the current price, extending up to $114,500.
Related Reading: Bitcoin Dip Predictions Moderate: Key Factors This Week
This has attracted the attention of some traders, who speculate that this concentration of sell orders might be a deliberate strategy to manipulate the market.
What the heck is this? $BTC pic.twitter.com/inHeXNGLFx
— Crypto Seth (@seth_fin) September 9, 2025
According to crypto investor and data analyst CW, “$BTC is approaching an area with a large number of short positions that are heavily leveraged,” as they mentioned.
Material Indicators, a trading resource, suggested that the area below $115,000 might create “some resistance” for Bitcoin’s upward movement.
However, they also noted that favorable macroeconomic conditions, particularly the anticipated interest rate cuts by the U.S. Federal Reserve in the coming week, should support a “return to previous highs.”
Despite this optimism, they cautioned, “Don’t be misled into thinking that another dip to test support is impossible, as that is ALWAYS a possibility.”
This article does not provide financial advice. Investments in cryptocurrencies involve risk, and readers are advised to conduct their own thorough research before making any investment decisions.