Bitcoin finds itself in a precarious position as of September 4, 2025, with the cryptocurrency market teetering on the edge of a neutral-bearish sentiment. After enduring days of selling pressure, Bitcoin’s price has settled into a consolidation phase around the $110,000 mark. Despite efforts by bullish investors to defend this critical level, momentum has undeniably waned, raising questions about the potential for further declines in the near term.
Bitcoin’s Fragile Neutral-Bearish Setup
Axel Adler, a well-regarded analyst in the crypto world, characterizes the current market environment as a neutral-bearish base. He highlights that both price action and derivative flows are hovering below the critical 50 threshold, indicating a lack of conviction across essential indicators. “Short-term rebounds are certainly possible,” Adler notes, “but the market is devoid of the resolute bullish sentiment necessary for a prolonged uptrend.”
Adler’s analysis suggests that any upward movement from the current consolidation zone is more likely to resemble a mean-reversion bounce, potentially reaching the $113,000 level. This aligns with the Fair Value and mid-30-day range, offering a reprieve from bearish pressures but falling short of igniting a sustained rally. According to Adler, “For Bitcoin to genuinely shift gears and embark on a trend-confirming rally, two critical levels must be breached: Flow >55 and Price Index >50.” This is consistent with insights from Bitcoin Price Analysis Reveals Market-Bottom Cues, but $113,500 Remains the Key Test, which emphasizes the importance of surpassing key resistance levels to confirm a bullish trend.
BTC Holding the Line at $110K
Bitcoin’s price action remains caught in a tug-of-war, with bulls managing to keep it afloat around the $110K–$111K range after a sharp dip to lows near $108K. However, the 50-day moving average now poses a significant resistance barrier, limiting the potential for any substantial upward movement. The struggle to regain momentum above this level underscores the market’s current fragility, as discussed in Bitcoin reclaims $110K, but BTC market remains ‘fragile,’ analysis says.
Despite the retreat from its $123K all-time high, Bitcoin’s structure remains intact above the 200-day moving average, situated near the $101K mark. This long-term support has consistently provided a safety net for the cryptocurrency. Yet, in the immediate term, the flat trajectory of the 100-day moving average suggests that a definitive breakout is necessary to determine the direction of the market. Should Bitcoin manage to close above $113K in the coming days, it could pave the way for a retest of the $118K level—a critical mid-range that has historically acted as both support and resistance.
Historical Context and Market Dynamics
Historically, retracements within ongoing bull markets often serve as resets, rather than signaling trend reversals. However, the current pressure on Bitcoin has sparked a lively debate among investors and analysts alike regarding its short-term trajectory. The stakes are high; maintaining levels above $110K is crucial for sustaining positive sentiment. Falling below could tip the scales in favor of the bears, exposing Bitcoin to further tests of support zones, including the psychological $105K level.
Adding a layer of complexity to the market dynamics is the ongoing situation with Ethereum. In recent days, Ethereum’s demand has surged, with whales accumulating 260,000 ETH in just 24 hours. This shift in focus to Ethereum raises the stakes for Bitcoin, as investors weigh their options in an ever-volatile market landscape.
Looking Ahead: Uncertainty and Opportunity
As Bitcoin navigates this challenging phase, traders and analysts continue to watch with bated breath. The immediate question remains whether buyers can stabilize flows and absorb the persistent selling pressure. Should Bitcoin hold the line above $110K, it could set the stage for a more optimistic outlook. However, the persistent risk of further corrections looms large, and the market remains vigilant for any shifts in sentiment.
In the weeks ahead, all eyes will be on Bitcoin’s ability to either stabilize or succumb to the mounting bearish pressure. Without a decisive move above current resistance levels, the cryptocurrency’s fate hangs in the balance, leaving market participants to ponder whether this consolidation marks a pause or a prelude to deeper corrections.
Source
This article is based on: Bitcoin Market Base Turns Neutral-Bearish As Flows Stay Weak
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Market Shifts To Neutral As Adjusted MVRV Reads 39%
- Bitcoin Floats Around $110K as Traders Look Toward Friday Data for Upside
- Bitcoin Hovers Around $107K as Weakest Month for Crypto Begins
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.
