Bitcoin News Today: Institutional Demand Quietly Builds as Bitcoin Eyes $120K Rally

Bitcoin appears to be in a position where it could rebound toward $120,000, provided the support level of $104,000 to $108,000 holds. On-chain data and institutional insights, including those from JPMorgan , indicate that structural demand is evident through shrinking exchange reserves, steady ETF inflows, and a subdued Network Value to Transaction (NVT) ratio. These metrics suggest that Bitcoin may be undervalued and not in an overbought state, which could support further accumulation by institutional players and long-term investors.

Key on-chain signals include the Market Value to Realized Value (MVRV) ratio, which currently stands at 2.1, well below levels that indicate overheating near 4. This is consistent with a market in accumulation rather than distribution. Additionally, the NVT ratio has dropped over 23% to 23.7, signaling improved network fundamentals as transaction activity rises relative to the market cap. A lower NVT historically aligns with more sustainable valuation growth and indicates the network may be avoiding the overvaluation that typically precedes market corrections [1].

Technical indicators also point to a potential rebound. At press time, Bitcoin traded around $108,450, having rebounded from the 0.618 Fibonacci retracement at approximately $104.7K. The Relative Strength Index (RSI) is near 37, indicating diminishing downside momentum and conditions approaching oversold levels, which favors a controlled rebound if the support level holds. Traders and investors are advised to monitor the $104K to $108K range, as holding this zone could open the path toward $112K and subsequently $120K. Conversely, a decisive break below $104K would increase the likelihood of a test at the $100K level [1].

Futures market activity has also shown signs of stabilization. Futures volumes have cooled, and the derivatives "Bubble Map" indicates a reduction in speculative intensity. This decline in leverage and trading volume reduces the risk of large-scale liquidations, giving institutional players room to accumulate Bitcoin methodically. This environment supports price discovery and a more prolonged, sustainable rally rather than an impulsive spike [1].

Institutional interest in Bitcoin remains strong, but its impact is more aligned with gradual, sustained gains rather than immediate, dramatic price movements. The cooling of futures markets and lower volatility suggest that institutions may be prioritizing efficiency and long-term positioning over short-term speculation. As such, while the market is not poised for an immediate parabolic move, the conditions are favorable for a steady increase in price over time. Market participants are advised to apply strict risk management strategies, including the use of stop-loss levels below $104K and cautious position sizing, to mitigate potential downside risks [1].

Combining these on-chain metrics, technical indicators, and institutional perspectives provides a compelling case for Bitcoin to rebound toward $120K if the $104K support area holds. Investors and traders should continue to monitor key levels, volume trends, and RSI developments while maintaining disciplined risk controls. The interplay of structural demand, improved network fundamentals, and a more stable derivatives market positions Bitcoin for a potential sustained upward movement in the near term [1].