Bitcoin’s price is once again under pressure, as it falters below $112,000. Analysts are keeping a close eye on the situation, with some suggesting a potential significant sell-off could be looming if key support levels fail to hold.
Bears Take the Reins
In recent trading sessions, Bitcoin has been unable to sustain upward momentum, struggling to recover above the $112,000 threshold. The cryptocurrency dipped below the $112,550 mark, sending ripples of concern through the market. Data from Kraken reveals a break below a critical bullish trend line at $108,450 on the hourly chart for the BTC/USD pair. This could be a harbinger of further declines if the $108,000 support zone is breached. This aligns with recent observations in Bitcoin whales send BTC price under $109.5K as market ‘wobbles’ into US PCE, highlighting the influence of large market players.
Crypto analyst Sarah Thompson notes, “Bitcoin’s current trajectory isn’t just about immediate resistance levels; it’s about the broader market sentiment.” She adds that the digital currency’s failure to stabilize above the 100 hourly Simple Moving Average (SMA) underscores the bearish outlook.
Resistance Levels Under Scrutiny
Bitcoin’s recent recovery attempts have been lackluster. After climbing from a low of $107,352, it managed to push past the $108,000 and $108,500 barriers, even crossing the 23.6% Fibonacci retracement level from the $113,457 swing high to the $107,352 low. Yet, the $109,500 mark proved too formidable, as sellers stepped in to stymie further gains.
The cryptocurrency is now trading below $109,000, with resistance levels emerging at $109,400 and $110,000. A potential breakthrough above $110,500 could set the stage for a test of $112,000 and possibly $112,500. But that’s a big “if.” As discussed in Bitcoin’s Short-Term Fate Hinges On $112,000 Realized Price Level – Details, the $112,000 level remains a crucial point for Bitcoin’s short-term prospects.
James Lee, a market strategist, opines, “The resistance near $110,500 is critical. Without a decisive move above this level, Bitcoin’s path to recovery remains murky.”
The Road Ahead: A Fork in the Path
If Bitcoin fails to surmount the $110,500 resistance, the consequences could be dire. Immediate support lies at $108,000, with more substantial defenses at $107,400 and $106,500. A breach of these levels could drive the price toward $105,500, with the main support resting at $103,500. Should this support crumble, the market might witness a sharp decline.
Technical indicators paint a cautious picture. The hourly MACD is gaining traction in bearish territory, while the RSI for BTC/USD is languishing below the 50 mark. These signals suggest that the bears could remain in control unless a dramatic shift occurs.
Historical Context and Market Sentiment
Historically, Bitcoin’s price movements have often mirrored broader market sentiments. The recent sell-off isn’t occurring in a vacuum but is part of a larger narrative of uncertainty and volatility. Macro-economic factors, regulatory developments, and institutional adoption continue to play pivotal roles in shaping Bitcoin’s trajectory.
Market participants remain divided. Some see opportunities in the current dip, while others advise caution, citing the complex interplay of technical and fundamental factors. It’s a classic tale of risk versus reward.
A Cautious Outlook
As September unfolds, Bitcoin traders and investors find themselves at a crossroads. The digital asset’s immediate future hinges on its ability to conquer resistance levels and fend off looming support challenges. But with the ever-present specter of volatility, nothing is set in stone.
The coming weeks could reveal whether Bitcoin can reclaim its bullish narrative or if further declines will test the resolve of the crypto faithful. For now, the market holds its breath, waiting for the next chapter in Bitcoin’s storied journey.
Source
This article is based on: Bitcoin Price Warning: Is a Major Sell-Off Coming Next?
Further Reading
Deepen your understanding with these related articles:
- Bitcoin bull market will be ‘over’ if $100K BTC price is lost: Trader
- Bitcoin Price Analysis Reveals Market-Bottom Cues, but $113,500 Remains the Key Test
- Bitcoin Price Fights Off 10-Day Sell Streak—Are Buyers Gaining Control?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
