Bitcoin News Today: Bitcoin's Correction: A Bull Market Reset or a Bearish Warning?

Bitcoin's price volatility in response to recent U.S. nonfarm payrolls data has prompted varied reactions among market analysts, with many focusing on the potential for a correction before the next phase of the bull market. The August nonfarm payrolls (NFP) data, which reported an addition of only 22,000 jobs—far below the expected 75,000—has fueled expectations of a Federal Reserve rate cut at its September 17 meeting. This sentiment is reinforced by the CME Group’s FedWatch Tool, which highlights the growing probability of a policy shift [1].

The weak labor market data has led to a sharp decline in the U.S. dollar’s strength and a record high for gold. Meanwhile, Bitcoin (BTC) saw a brief spike to $113,400 before retreating to below $111,000, leaving traders uncertain about the short-term trajectory. Market participants remain divided, with some viewing the current price action as a consolidation phase that could eventually give way to a renewed bullish trend [2].

Several analysts, including Ted Pilliow, argue that the present pullback mirrors previous corrections seen in 2024 and early 2025, when Bitcoin fell roughly 30% before stabilizing. Pilliow noted that a decline below $100,000 is not ruled out but is seen as a normal part of the broader bull cycle rather than a reversal [3]. Glassnode’s on-chain data further supports this view, identifying key price levels between $104,000 and $116,000 as critical for determining the next stage of the market. Should Bitcoin break below $104,000, it could test support at $93,000 to $95,000, potentially triggering a phase of exhaustion seen after previous highs [4].

Technical indicators also play a significant role in the current assessment. Traders like Daan Crypto Trades have highlighted the 200-period simple moving average (SMA) and exponential moving average (EMA) as crucial metrics for evaluating Bitcoin’s momentum. The fact that these lines are currently acting as resistance suggests that a sustained break above them could reignite bullish momentum [5]. However, bearish perspectives persist, with some analysts warning that if Bitcoin fails to hold key support levels, the price could drop toward $92,000 to $94,000, aligning with a potential CME gap [6].

Another point of analysis comes from Santiment, which observed a growing divergence between Bitcoin’s performance and that of other major assets. Since August 22, Bitcoin has declined by 5.9%, while gold has advanced by 5.5% and the S&P 500 has edged higher by 0.4%. Santiment suggested that this divergence could eventually result in a Bitcoin rebound as it realigns with broader market trends [7].

Overall, while the immediate outlook for Bitcoin remains uncertain, the consensus among analysts leans toward a continuation of the broader bull market. Corrections are seen as necessary mechanisms for resetting the market, cooling speculative fervor, and creating new opportunities for long-term investors. The upcoming Fed rate decision and Bitcoin’s performance against key resistance and support levels will be closely watched in the coming weeks to determine the next phase of the market [8].

Source:

[1] Bitcoin price ignores major US payrolls miss to erase (https://cointelegraph.com/news/bitcoin-price-ignores-major-us-payrolls-miss-erase-113-4k-surge)

[2] Analysts Monitor Bitcoin for Potential Dip Below $100000 (https://www.cointribune.com/en/analysts-monitor-bitcoin-for-potential-dip-below-100000/)