Bitcoin News Today: Bitcoin's Profit Trap: 90% in the Green, But Bulls Face a Wall at $112K

Bitcoin’s price action has reflected a cooling of the market's euphoric momentum following its recent all-time high of $124,500, with the cryptocurrency currently facing key resistance at the $112,000–$116,000 range. According to data from market intelligence firm Glassnode, over 95% of Bitcoin’s supply was in profit during the rally, indicating widespread net distribution and a potential exhaustion of buying pressure. This led to a 14% drop from the peak to a seven-week low of $107,400, with the majority of short-term holders now back in profit but remaining fragile amid volatility [1].

The 0.95 quantile cost basis, a threshold above which 95% of supply is in profit, has historically acted as a consolidation corridor following euphoric peaks. As of now, 90% of Bitcoin’s supply is in profit, ranging between $104,100 and $114,300, with a sustained recovery above $114,000–$116,000 needed to restore confidence and attract new demand. A successful breakout from this range would mark a significant shift in market sentiment [1].

The price has stalled at the $112,000 level multiple times this week, indicating strong resistance from both the 100-day and 50-day simple moving averages. Analysts suggest that bulls must convert this zone into new support to confirm the end of the correction phase. Failure to do so may lead to further downward pressure. According to trader Daan Crypto Trades, a move back above $112,000 and its ability to hold would be a positive short-term signal for Bitcoin [1].

Meanwhile, Ethereum and XRP have shown early signs of recovery amid broader market uncertainty. Ethereum has seen renewed interest following a decline in open interest, with traders reducing speculative exposure as leverage ratios normalize. XRP, which has declined nearly 20% over 45 days, appears to be consolidating within a descending triangle near the $2.70 support level. Onchain data and futures positioning indicate a leverage reset and early accumulation by long-term holders, reducing the risk of cascading liquidations [3].

The fair value gap between $2.35 and $2.65, reinforced by Fibonacci retracement levels and fractal patterns, suggests a potential 60% to 85% rebound for XRP into the fourth quarter. If historical patterns repeat, a breakout from the current consolidation could lead to a sharp price increase. Crypto trader Javon Marks has noted that as long as XRP holds above $2.47, it could see an additional 66% upside. These signs point to a potential turnaround in the market's bearish sentiment for the token [3].

Despite the uncertainty, some analysts remain cautiously optimistic. Bitfinex reports that Bitcoin has entered its third consecutive week of retracement from its August all-time high, with a short-term floor forming between $93,000 and $95,000. However, LMAX Group’s Joel Kruger highlights that September historically precedes stronger fourth-quarter performance, and if ETF inflows, corporate allocations, and regulatory developments continue, the correction could be milder than expected [2].

Source:

[1] Bitcoin's 'euphoric phase' cools as $112K becomes key BTC price level (https://cointelegraph.com/news/bitcoin-euphoric-phase-cools-112k-key-btc-price-level)

[2] Bitcoin Price News: BTC Slips Below $110K (https://www.coindesk.com/markets/2025/09/04/bitcoin-slips-below-usd110k-as-analysts-weigh-risk-of-deeper-pullback)

[3] XRP stuck in downtrend, but 3 data points forecast 85% ... (https://cointelegraph.com/news/xrp-downtrend-extends-but-data-predicts-85percent-bounce)