Bitcoin News Today: Bitcoin Bulls Seize Control as $112K Support Ignites Rally

Bitcoin has experienced a dramatic price rebound, with the cryptocurrency reclaiming key support levels amid heightened market optimism. On Wednesday, the price of Bitcoin (BTC) surged past $112,000, signaling a potential shift in market sentiment and reinforcing the dominance of bullish investors. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD retested crucial support levels, including $112,000, where a significant amount of ask liquidity was observed on exchange order books. This level appears to have acted as a catalyst for a sharp rebound, as traders flipped to a bullish stance, particularly with the market anticipating a Federal Reserve interest-rate cut in September [1].

The liquidation of short positions further accelerated the price action, with CoinGlass reporting that a portion of the liquidity at $112,000 was consumed in a single trading day. The remaining liquidity extended up to $114,000, suggesting a strong near-term upward bias. Prominent trader CrypNuevo noted that this move represents an attempt to reclaim "Support 1," a critical level for reversing the downward trend and returning to a defined trading range. The trader emphasized that with less than two weeks until the expected rate cut by the US Federal Reserve on September 17, Bitcoin’s market behavior aligns with a broader bullish narrative [1].

Further reinforcing this bullish momentum, Bitcoin’s price action has preserved the “bull market support channel,” a technical indicator formed by two moving averages. According to trader BitBull, this channel has been a key factor in Bitcoin’s recent performance. “$BTC perfectly bounced back from its bull market support band,” he stated on X, highlighting that such a rebound is a clear sign that bulls remain in control. This is particularly significant as many market participants continue to express bearish sentiments, with some anticipating a retest of the $100,000 level in the short term [1].

The broader macroeconomic landscape has also supported Bitcoin’s performance. With the global market bracing for another wave of US dollar weakness, gold and Bitcoin have emerged as preferred hedges against inflation and monetary policy uncertainty. Gold, in particular, has reached record highs, with the price hitting $3,567 per ounce, while Bitcoin has drawn similar attention as a store of value. QCP Capital, a leading trading firm, has highlighted that Bitcoin and gold are positioned as "straightforward hedges" in a backdrop of prolonged policy uncertainty and potential dollar depreciation [1].

Market expectations for a Federal Reserve rate cut in September have now exceeded 95%, according to the CME Group’s FedWatch Tool. This heightened anticipation has fueled further speculation and investment in Bitcoin, particularly as traders position themselves ahead of what could be a pivotal moment in the market cycle. The combination of macroeconomic dynamics, technical strength, and regulatory developments has positioned Bitcoin for potential long-term appreciation, with institutional actors beginning to re-enter the market [1].

As the market continues to navigate these dynamics, the coming weeks will be critical in determining whether Bitcoin can maintain its current upward trajectory or if bearish forces will regain control. With the Fed’s decision looming on the horizon and liquidity levels stabilizing, the path forward for Bitcoin will likely hinge on a combination of macroeconomic policy shifts and evolving investor sentiment [1].

Source:

[1] Bitcoin bulls 'still in control' as BTC price passes $112K (https://cointelegraph.com/news/bitcoin-bulls-still-in-control-btc-price-passes-112k-analysis)