Bitcoin News Today: Bitcoin Bulls Eye $112K Breakout as Market Shifts From Fear to Cautious Hope

Bitcoin and Ethereum prices showed signs of recovery on September 3, with the leading cryptocurrencies trading above key support levels. Bitcoin (BTC) briefly traded above $111,200, having broken through the $110,000 threshold and the 100-hour Simple Moving Average (SMA). The price movement suggested a short-term rising channel was forming, with support at $110,500 on the BTC/USD hourly chart. Analysts noted that if Bitcoin could clear the $112,000 resistance level, it could potentially test levels as high as $114,500 or even $115,500. However, a failure to break above $112,000 could result in a fresh decline, with key support levels identified at $110,400 and $109,500.

Ethereum (ETH) also demonstrated resilience, though it lagged slightly behind Bitcoin in terms of upward momentum. Technical indicators suggested that Ethereum’s price trajectory was still subject to the same macroeconomic pressures affecting Bitcoin, particularly concerning the Federal Reserve’s potential interest rate decisions. According to on-chain analytics, the broader crypto market remained in a fragile equilibrium, with only 9% of Bitcoin’s supply currently held at a loss. This metric stood in stark contrast to the 25% recorded at the cycle’s local low in April, offering some optimism that the market had not yet experienced widespread capitulation.

Market sentiment appeared to shift from fear to cautious neutrality, as reflected by the Crypto Fear & Greed Index, which moved into the mid-30s to mid-40s range. This indicated that the intense selling pressure that had driven Bitcoin down from its August 14 peak of $124,457 to as low as $107,500 was beginning to ease. Additionally, data from on-chain analytics firm Bitcoin Vector showed that the recent price correction had not been as severe as those seen in previous bear cycles. The market’s relative strength was also evident in Bitcoin’s Cost Basis Distribution (CBD), which revealed strong buyer support compared to Ethereum’s weaker flows.

Further technical analysis suggested that Bitcoin’s spot market was showing early signs of a potential recovery rally. Exchange flows at major platforms such as Coinbase and Binance indicated a liquidity regime shift, favoring reaccumulation. Coinbase recorded a netflow spike following a multi-year low in its 30-day SMA, while Binance’s netflow hit a peak coinciding with past reaccumulation phases. These movements suggested a reallocation of reserves that could support a bullish breakout if Bitcoin managed to confirm the trend by breaking above $113,650.

At the time of reporting, Bitcoin was trading at approximately $110,700, up slightly from the previous 24-hour period but still down 3.2% from the past month. Despite this, the cryptocurrency maintained a robust 87.6% gain over the past year. Analysts remained divided on the implications of the Federal Reserve’s upcoming rate decision, with some believing that the potential for a rate cut could provide a floor for Bitcoin’s price while others warned that persistent high borrowing costs might temper any bullish momentum.

In summary, Bitcoin and Ethereum showed early signs of stabilization, with technical indicators and on-chain data pointing toward a cautious optimism for a possible recovery. However, the broader market remained sensitive to macroeconomic developments, particularly the Fed’s monetary policy outlook. Investors and traders alike were closely monitoring key resistance levels and liquidity shifts for further clues on the direction of the market in the near term.

Source:

[1] Bitcoin Price Recovery Hopes Rise – Can Bulls Push It ... (https://www.mitrade.com/insights/news/live-news/article-3-1090421-20250903)

[2] Bitcoin Recovery in Sight? Fear & Greed Index Signals ... (https://cryptopotato.com/bitcoin-recovery-in-sight-fear-greed-index-signals-cautious-optimism/)

[3] Uptick in Bitcoin spot trading hints at possible breakout to ... (https://cointelegraph.com/news/uptick-in-bitcoin-spot-trading-hints-at-possible-breakout-to-dollar119k)

[4] Bitcoin, Ethereum, and XRP All Continue to Drop. Here's What ... (https://finance.yahoo.com/news/bitcoin-ethereum-xrp-continue-drop-094900395.html)