Bitcoin News Today: Bitcoin's $112K Crossroads: Bullish Breakout or Bearish Repeat?

Bitcoin’s price has seen renewed volatility as traders and analysts closely monitor its movements above the $112,000 level. On Friday, the cryptocurrency rebounded after breaching this key threshold, liquidating short positions worth $14.32 million in one hour alone, according to data from CoinGlass. Analysts have noted that this bounce suggests growing bullish sentiment ahead of the upcoming U.S. jobs report, a key event that could influence both Bitcoin and broader financial markets.

Michael van de Poppe, founder of MN Capital, highlighted that $112,000 is a critical support level that, if held, could attract new long positions. He described the level as a “good entry opportunity” for traders looking to capitalize on a potential breakout. Meanwhile, trader Rekt Capital emphasized the importance of reclaiming $113,000 to solidify the upward momentum and increase the likelihood of a sustained rally. This comes as Bitcoin consolidates its price action within a descending channel, with recent support found around $110,000.

The U.S. jobs report scheduled for Friday has heightened market expectations, particularly in relation to the Federal Reserve’s upcoming rate decision. The Kobeissi Letter, a prominent economic commentator, noted that a “contracting labor market” could force the Fed to implement a rate cut of 25–50 basis points at its September 17 meeting. A weaker-than-expected jobs report would signal a slowing economy, potentially leading to increased liquidity and a boost for risk assets like Bitcoin. According to the CME Group’s FedWatch tool, traders currently price in a 99.4% probability of a 25-basis-point rate cut, marking a significant shift in market expectations in the wake of Fed Chair Jerome Powell’s recent Jackson Hole speech.

However, not all analysts are optimistic about Bitcoin’s immediate future. Joao Wedson of Alphractal warned that Bitcoin may be approaching the end of its four-year repetition cycle, which has historically been followed by bearish corrections. He cited a 15% drop from Bitcoin’s all-time high as an early sign of a potential downturn, with October being the likely turning point. Additionally, Jason Pizzino identified a rare technical pattern known as the “three bars down” on Bitcoin’s weekly chart, which has historically preceded major corrections—such as the 70% drop in 2017 and the 55% decline in 2021. While Pizzino acknowledged that market conditions differ this time, he cautioned that a break below $113,000 could extend the correction into the fourth quarter.

Despite these concerns, some market participants remain bullish, especially in light of the broader macroeconomic context. Analysts at Finance Magnates noted that expectations for rate cuts, combined with strong performance in gold and silver and historical seasonal trends, could create a favorable environment for Bitcoin in the fourth quarter. The Binance Bitcoin-to-stablecoin ratio, currently near parity, has historically aligned with market bottoms, such as in March 2023 when Bitcoin dipped to $78,000 before rebounding. However, the ratio has not yet confirmed a bottom, suggesting further consolidation or a deeper correction may still be on the table.

Crypto.com CEO Kris Marszalek has also expressed optimism about a strong fourth quarter, citing the potential for a Fed rate cut to stimulate liquidity and drive renewed interest in digital assets. He referenced the 57% gain seen in the crypto market during the Fed’s rate cuts of late 2024 and early 2025 as a possible template for the current cycle. Marszalek, however, has not yet decided on a potential initial public offering for his firm, despite strong financial performance and growing investor interest in crypto exchanges.

As the market navigates this critical juncture, Bitcoin’s ability to sustain momentum above $112,000 and confirm a breakout will be pivotal. With the Fed’s decision looming and technical indicators offering conflicting signals, the coming days and weeks will be crucial in determining whether Bitcoin can overcome its current stalling moment and enter a new phase of growth.

Source:

[1] Bitcoin analysts see a 'massive' move as BTC price regains ... (https://cointelegraph.com/news/bitcoin-analysts-see-massive-move-btc-price-regains-112k)

[2] If Bitcoin Price Collapses, How Low Will It Go? - Yahoo Finance (https://finance.yahoo.com/news/bitcoin-price-collapses-low-042138744.html?prefer_reader_view=1&prefer_safari=1)

[3] This Analyst Flags 'Three Bars Down' Pattern for BTC Traders (https://www.financemagnates.com/trending/bitcoin-faces-drop-this-analyst-flags-three-bars-down-pattern-for-btc-traders/)

[4] Could an Interest Rate Cut from the Fed Help or Hurt Bitcoin? (https://www.nasdaq.com/articles/could-interest-rate-cut-fed-help-or-hurt-bitcoin)

[5] Here's Why a Fed Rate Cut Could be Great News for XRP (https://finance.yahoo.com/news/heres-why-fed-rate-cut-094500210.html)

[6] Crypto.com CEO Predicts Strong Q4 On Fed Rate Cut Hopes (https://cointelegraph.com/news/crypto-com-ceo-bets-fed-rate-cut-fuel-crypto-markets-in-q4)