Bitcoin News Today: Bitcoin Rebounds Near $112,000 as Momentum Cools and Traders Stay Cautious

Bitcoin has recently found a key support level near $112,000 following a significant pullback from its recent high near $121,000. This level, which previously acted as resistance before the breakout in late July, now serves as a critical support due to its alignment with a long-term trendline dating back to March 2025. The price rebound at this zone indicates continued buyer interest, suggesting that the immediate downward trend may be stabilizing[1].

However, momentum indicators are signaling a cooling in bullish strength. The Relative Strength Index (RSI) has dropped to 46.46, below the neutral 50 level, and the Moving Average Convergence Divergence (MACD) has seen a bearish crossover, with the MACD line falling below the signal line. These technical signals indicate that the recent rally may be losing steam, prompting traders to exercise caution in the near term[1].

Market activity also reflects uncertainty. Trading volume remains subdued, with only 36 BTC traded in the last session, which points to a cautious stance among market participants. Indecisive price action further underlines this hesitation. Key levels to watch include $116,000 as the next resistance and $112,000 as critical support. Sustaining above $112,000 would affirm the broader bullish trend, while a breakdown could expose further downside toward $105,000[1].

The convergence of trendline and horizontal support at $112,000 positions it as a pivotal decision point for Bitcoin’s near-term trajectory. A successful defense at this level could allow Bitcoin to consolidate before attempting another upward move. Conversely, failure to hold above $112,000 may invite renewed selling pressure. At the same time, a breakout above $116,000 could reinvigorate bullish momentum and signal the continuation of the upward trend[1].

Technical indicators are shaping market expectations by highlighting the current phase of weakening bullish momentum. Traders are advised to closely monitor RSI and MACD for signs of a potential shift in trend direction. These indicators often precede larger market movements, making them key tools for assessing Bitcoin’s next likely move[1].

Bitcoin’s recent pullback to $112,000 is attributed to profit-taking after reaching near $121,000 and weakening momentum metrics such as RSI and MACD. The support level at $112,000 is crucial for price stability, as it combines historical resistance and a long-term trendline. Maintaining this level is essential for preventing further declines and preserving the broader bullish narrative[1].

As Bitcoin navigates this critical phase, traders should remain alert to the unfolding market dynamics. The next directional move will likely be dictated by whether Bitcoin can overcome $116,000 resistance or hold the $112,000 support level.

Source: [1] Bitcoin May Find Support Near $112K Amid Cooling Momentum and Market Uncertainty (https://en.coinotag.com/bitcoin-may-find-support-near-112k-amid-cooling-momentum-and-market-uncertainty/)