Bitcoin slipped early Thursday as the recent crypto market recovery lost momentum, despite renewed optimism that the Federal Reserve may soon begin cutting interest rates.
On Wednesday night, Bitcoin briefly touched $112,529, its highest point of the week. According to analysts, this correction shifted the market from a “euphoric phase” to a net distribution phase, cooling the overly bullish sentiment that had built up earlier in August.
The world’s largest cryptocurrency later declined, trading around $109,295 in early Thursday trading, down 0.4% over the past 24 hours. Despite the recent pullback, BTC remains up more than 2% in September, as it attempts to rebound from a late-August selloff that dragged prices from record highs above $124,000 to near $108,000.
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Data from Glassnode revealed that Bitcoin’s surge to record highs in mid-August briefly pushed 100% of BTC supply into profit, signaling peak market euphoria.
However, by August 19, demand began showing signs of weakness, with BTC slipping back below this key profitability band. Currently, 90% of Bitcoin supply is still in profit, positioned within the $104,100 to $114,300 range, which historically acts as a “consolidation corridor” following euphoric market peaks.
Trade Nation analyst David Morrison noted the unusual trading behavior earlier in the week. He said,
“It was interesting to see the crypto market rally sharply alongside gold and the U.S. dollar, even as equities experienced their biggest pullback since early August. This suggests crypto benefited from safe-haven flows as investors reduced exposure to stocks during Tuesday’s risk-off session.”
Resistance Levels Holding Firm
Bitcoin’s relief rally has repeatedly stalled at the $112,000 level this week, a clear sign that bears are aggressively defending this price zone.
The $111,700–$115,500 range is emerging as a major supply and resistance zone, aligning with both the 50-day and 100-day simple moving averages (SMA).
Bulls need to flip this region into strong support to confirm the end of the current correction.
Failure to do so risks further downside, potentially pushing BTC toward the critical $100,000 level.
Bulls vs. Bears: The $100K Showdown
Many market analysts are now focused on the $100,000 price level, which could determine Bitcoin’s short-term trajectory.
Some traders believe a retest of $100K support is inevitable as part of the ongoing correction. One trader even warned that the bull market could end if Bitcoin fails to hold above this mark, potentially signaling the start of a new bear market as early as October.
Key Technical Indicators
BTC is currently attempting to break above a downward-sloping trendline that has capped price action since the mid-August correction began.
At the same time, analysts are also tracking Tether’s market dominance (USDT.D). Historically, Bitcoin price and Tether dominance move inversely. USDT.D is now testing its own downward trendline.
A breakout in Tether’s dominance could indicate increased market caution and potential BTC weakness.
Outlook
Bitcoin faces a pivotal moment as bulls and bears battle for control. A successful breakout above $115,500 could reignite bullish momentum and signal a potential end to the correction phase. Failure to defend $100,000 support could confirm bearish control, opening the door to a deeper correction.
As September progresses, the crypto market will closely watch macroeconomic signals, especially the Federal Reserve’s rate decisions as they remain a key driver of investor sentiment and risk appetite.