Bitcoin News Today: Bitcoin's "Euphoric Phase" Fades as Bulls Battle to Break $114K Resistance

Bitcoin's price movement over the past week has drawn attention from market analysts as the cryptocurrency consolidates near the $110,000 level following a significant correction from its all-time high of $124,500. The recent pullback has led to a net distribution phase, indicating a cooling off of the market's "euphoric phase," as observed by data from Glassnode. This phase saw 100% of Bitcoin's supply in profit during the peak rally in mid-August, but the correction has reduced this figure to 90%, suggesting a period of market exhaustion. The 0.85 to 0.95 quantile cost basis, corresponding to the $104,100–$114,300 range, has historically acted as a consolidation corridor after euphoric peaks, and this pattern may repeat if the price continues to trend sideways.

Technical indicators also highlight the significance of the $112,000–$116,000 zone. This level has repeatedly acted as a resistance point this week, with bears aggressively defending it. A sustained recovery above $114,000 would be crucial to regain bullish momentum, as it would place more than 75% of short-term holder supply back into profit territory. On the daily chart, Bitcoin has tested the $110,000 level multiple times, failing to reclaim the higher ground it had previously held. The RSI remains near 45, indicating subdued buying pressure and indecision among market participants.

On the 4-hour chart, Bitcoin's recent breakout from a descending channel suggests that short-term selling pressure has eased. However, the price faced rejection at the $113,000 level and has since retreated toward the $110,000–$109,000 support band. The RSI on this timeframe is slightly above 50, signaling a neutral bias. If bulls manage to push the price back above $113,000 and maintain it there, it could indicate a resumption of the bullish trend. However, a decisive drop below $110,000 could invite renewed selling pressure and potentially push the price toward the $104,000 support.

Funding rates across exchanges remain a mixed signal, with leverage still favoring long positions but not at the extreme levels seen during previous peaks. This suggests that while bulls are still in control, the market is not in a euphoric or overheated state. Sustained positive funding indicates that long traders continue to pay shorts, which could add upward pressure if the price consolidates for too long. However, this dynamic also highlights the fragility of the current price level.

The broader crypto market also shows signs of stabilization, with some altcoins bouncing off key support levels. Ethereum, for instance, has struggled to maintain its position above the 20-day EMA at $4,379, but a rebound above this level could set the stage for a rally toward $4,500 and beyond. Solana has shown more resilience, breaking above its 20-day EMA and signaling that positive sentiment remains intact. The price action suggests that buyers are attempting to form a bullish ascending triangle pattern, with a potential target at $240 if the pattern completes successfully.

Meanwhile, gold’s recent all-time high above $3,500 per ounce has historically been followed by a 30% rise in Bitcoin within three months and a 225% rise within 12 months. If this pattern holds, Bitcoin could reach between $135,000 and $145,000 by early December. However, September's weak seasonality remains a near-term risk for bulls, with historical data suggesting a typical 5% decline between Sept. 16 and Sept. 23.

Source: [1] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-3-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui) [2] Bitcoin's 'euphoric phase' cools as $112K becomes key ... (https://cointelegraph.com/news/bitcoin-euphoric-phase-cools-112k-key-btc-price-level) [3] Bitcoin Price Analysis: Will BTC Crash Below $100K if This ... (https://cryptopotato.com/bitcoin-price-analysis-will-btc-crash-below-100k-if-this-support-breaks/) [4] Bitcoin Price Prediction 2025 - 2030 | BTC Price Analysis (https://icobench.com/cryptocurrency/bitcoin-price-prediction/)