Bitcoin News Today: Bitcoin's $112K Support Test Sparks Battle Between Bears and Bulls

Bitcoin tested a critical support level near $112,000 in recent trading sessions, as market participants closely monitored signs of a potential rebound toward $120,000. The cryptocurrency briefly dipped below $112,000 before stabilizing, with technical indicators suggesting a possible consolidation phase. According to Mitrade Insights, BTC regained ground above $112,200 but faces resistance near $114,000 and the 100-hourly simple moving average. A sustained move above $114,500 could open the path to higher levels, including $115,500 and potentially $116,500 [1].

The price movement coincided with broader market uncertainty, especially following U.S. Federal Reserve Chair Jerome Powell’s dovish speech at the Jackson Hole Symposium. While the initial reaction saw BTC climb above $117,000, the rally proved short-lived, with the price retreating amid thin liquidity and unwinding leverage. Analysts attributed the decline to whale activity, with reports indicating that large holders migrated significant portions of Bitcoin holdings into Ethereum [7]. This shift, observed in both institutional and individual traders, contributed to Bitcoin’s dominance falling to 57.94%, down from 61% earlier in the month [7].

Ethereum, meanwhile, showed stronger short-term momentum, with its ETFs experiencing inflows of over $625 million in the last two trading days of August. This contrasted with Bitcoin ETFs, which recorded a six-day outflow streak, totaling nearly $1.3 billion. CoinShares’ James Butterfill noted that Ethereum’s inflows were closely tied to its price surge, which reached an all-time high of $4,883. The growing interest in Ethereum was also reinforced by institutional adoption, including the integration of Binance’s USDT yield farming program with the Plasma Bitcoin Stablecoin Network [3].

Technical analysis of Bitcoin’s chart showed a mixed picture. The RSI indicator for BTC/USD fell below the 50 level, signaling bearish momentum, while the MACD indicator remained in the negative zone. However, a bullish divergence was observed on the 4-hour chart, suggesting that a rebound might be on the horizon. Analysts highlighted the importance of the $112,000 support zone, noting that a breach could trigger a deeper correction toward $108,500. On the other hand, a sustained move above $116,150 could signal the start of a new bullish phase, potentially targeting $120,900 and beyond [3].

Market sentiment remains polarized, with some investors viewing Bitcoin as a hedge against inflation and a long-term store of value. Leah Wald, CEO of SOL Strategies, projected that Bitcoin could reach $175,000 by year-end, citing institutional backing and growing adoption as key drivers. However, caution was also expressed by analysts such as Mike Novogratz of Galaxy Digital, who warned against overly optimistic valuations, suggesting that extreme price targets could reflect macroeconomic pressures rather than genuine crypto growth [3].

Looking ahead, the market will remain focused on key macroeconomic data, including jobless claims and further statements from the Federal Reserve. Additionally, the upcoming Bitcoin halving event in 2025 and the performance of ETFs could play a decisive role in shaping the next phase of Bitcoin’s price action. Institutional investors and whales are expected to continue influencing the market, with Ethereum showing signs of outperforming Bitcoin in the near term. However, Bitcoin’s long-term narrative as a digital store of value remains intact, and a successful retest of $120,000 could reignite bullish sentiment [1].

Source:

[1] Bitcoin Price Declines Further, Can Buyers Prevent ... (https://www.mitrade.com/insights/news/live-news/article-3-1065381-20250825)

[2] Bitcoin attains a major support level right ahead of Powell's ... (https://www.marketpulse.com/markets/bitcoin-attains-a-major-support-level-right-ahead-of-powells-jackson-hole-speech/)

[3] Bitcoin Eyes $120K Surge After $112K Rebound (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-eyes-120k-surge-after-112k-rebound)

[4] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether ... (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum)

[5] Six-day outflow streak hits Bitcoin ETFs, ETH turns positive (https://cryptoslate.com/insights/six-day-outflow-streak-hits-bitcoin-etfs-eth-turns-positive/)

[6] Ethereum vs. Bitcoin: The Flippening, Historical ... (https://www.mitrade.com/insights/news/live-news/article-3-1064277-20250824)

[7] Bitcoin slips to $112700 amid continued whale migration to ... (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration)