Bitcoin led a mild rebound across the broader altcoin market on Wednesday, September 3, tapping $112,500 after Wall Street opened as traders cautiously turned bullish.
The flagship cryptocurrency extended its three-day rally to reach a mid-New York session high of $112,517, according to data from Cointelegraph Markets Pro and TradingView.
BTC attempted to reclaim critical support levels, with $112,000 acting as a key liquidity zone on exchange order books. This rebound mirrored a broader risk asset recovery, with Gold rallying nearly 7% in three days to hit a new all-time high of $3,563 per ounce.
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Technical Tailwinds and Key Support Levels
Bitcoin’s recovery was fueled in part by strong technical factors. On both daily and weekly charts, BTC rebounded from a crucial support zone around $108,000, which aligns with the short-term Market Value to Realized Value (MVRV) indicator.
Crypto analyst Benjamin Cowen noted that historically, Bitcoin often bottoms in September of the post-halving year before entering a Q4 cycle top. Popular trader CrypNuevo echoed this sentiment, stating on X (formerly Twitter):
“This looks like an attempt to reclaim Support 1, which would lead to a move back inside the range.”
CrypNuevo also highlighted a potential bullish catalyst on the horizon the U.S. Federal Reserve’s September 17 interest-rate decision, which could shift investor sentiment in favor of risk assets like Bitcoin.
Institutional Demand and Regulatory Clarity Drive Optimism
In addition to technical factors, rising institutional demand has fueled Bitcoin’s recent momentum. Data from BitcoinTreasuries revealed that 21 new entities added BTC to their balance sheets in the past three days, bringing the total to 314 institutions, led by Michael Saylor’s MicroStrategy.
Traditional financial institutions, including U.S. Bancorp, have also begun integrating Bitcoin to retain clients amid growing crypto adoption. Analysts believe that clearer regulatory frameworks are boosting institutional confidence and could accelerate mainstream adoption of Bitcoin and altcoins.
Whale Activity Signals Market Shift
Despite the rebound, data shows that long-term holders are becoming more active, a trend often associated with market tops or corrections. The Long-Term Holder Binary Spending Indicator has recorded a surge in activity from older wallets. Historically, such spikes occur near price peaks or before broader sell-offs.
Further, Glassnode data indicates that the average BTC balance among large wallets (100–10,000 BTC) has dropped to 488 BTC, its lowest level since December 2018. This steady decline, which began in November 2024, suggests whales are gradually reducing their exposure.
Chart Breakout Hints at Potential Recovery
Technical analyst Rekt Capital highlighted that Bitcoin has closed above a multi-week downtrend linethat has capped prices since early August.
“BTC has Daily Closed above its multi-week Downtrend,” Rekt Capital noted. If BTC can hold above this trendline during a retest, it could pave the way for a stronger short-term recovery. Failure to maintain this level, however, may reignite selling pressure.
Market sentiment is showing tentative signs of recovery. According to analyst Maartunn, the Crypto Fear & Greed Index has moved from “Fear” to a neutral zone, now hovering between 39 and 46.
This suggests that the intense selling pressure following Bitcoin’s August 14 peak of $124,457 may be easing. BTC briefly dipped to $107,500 earlier this week before rebounding above $111,000.
On-chain analytics provider Bitcoin Vector characterized the recent correction as relatively shallow, implying a fragile but improving market structure.
Future Outlook
As traders weigh the possibility of a broader recovery, Bitcoin’s ability to hold above $112,000 and maintain institutional momentum will be critical in determining whether this rebound evolves into a sustained bullish phase.