Bitcoin News Today: Bitcoin's $112K Crossroads: Bull or Bear Next Move?

Bitcoin has retreated below the $110,000 mark amid a broad correction that has seen the market transition into a phase of net distribution, according to recent on-chain analytics. As of August 29, the price had fallen to a seven-week low of $107,400, dropping nearly 14% from its mid-August high of $124,500. This decline reflects a broader market exhaustion, with 90% of Bitcoin supply currently in profit within the $104,100–$114,300 range. Historically, this corridor has functioned as a consolidation area following periods of intense bullish momentum, often leading to a sideways or range-bound market until a clear breakout emerges. Breaking below the $104.100 level would mirror previous exhaustion phases seen in this cycle, while a sustained recovery above $114,300 would signal renewed demand and a potential resumption of the upward trend.

The short-term holder supply in profit has also seen a sharp contraction, dropping to 42% from above 90% in recent weeks. This sharp reversal indicates a classic cooling-off period for the market, where fear-driven selling from top buyers is followed by exhaustion of the very same sellers. Despite a recent rebound to $112,000, this recovery remains fragile. For the market to regain confidence and attract new demand, a sustained move above $114K–$116K is necessary, as this would push more than 75% of short-term holder supply back into profit. Without such a level of sustained momentum, the bull trend may struggle to maintain its forward momentum.

Bitcoin’s price has repeatedly stalled at the $112,000 level this week, indicating strong resistance from bears who are aggressively defending this area. This price zone aligns with the 100-day simple moving average and the 50-day SMA, suggesting it is a key psychological and technical barrier for the bulls. Analysts suggest that a confirmation of this level as new support would be crucial in signaling the end of the current correction phase. Failure to hold above this range could lead to further downward pressure in the near term.

The market is currently in a consolidation phase after a 3.5-month period in which more than 95% of Bitcoin supply was in profit. Such a state requires persistent capital inflows to offset relentless profit-taking, which is rarely sustainable for long. As a result, investors are now closely watching for signs of renewed demand that could trigger a new bull cycle. The recent volatility has also been reflected in the percentage of Bitcoin supply in profit, which has fallen from 100% to 90% in just a few weeks.

As the price approaches the $112,000 level, the focus for traders and analysts is on whether Bitcoin can break through this resistance and reclaim control of the trend. A move above the 20-day exponential moving average at $112,438 would be a positive signal for the bulls, potentially opening the door to a fresh rally toward previous all-time highs. However, without a clear and sustained break above the $114,300–$116,000 range, the likelihood of a prolonged sideways or bearish phase remains high.

The current price action highlights the importance of the $112,000–$116,000 supply zone in determining the near-term trajectory of Bitcoin. This level represents a critical test for both bulls and bears. A failure to hold above this range could lead to further downside, while a successful break above it may initiate the next leg of the upward trend.

Source: [1] Bitcoin's 'euphoric phase' cools as $112K becomes key ... (https://cointelegraph.com/news/bitcoin-euphoric-phase-cools-112k-key-btc-price-level) [2] Gigachad (GIGA) Price Today, News & Live Chart (https://www.forbes.com/digital-assets/assets/gigachad-giga/)