Bitcoin Traders Adopt ‘Defensive’ Stance as Price Reclaims $110K

The key takeaways

• Bitcoin price recaptures $110,000, but bearish pressure persists. 

• BTC has to turn the $110 500-$112,000 range into new support if it wants to avoid further declines towards $100,000. 

BitcoinBTCPrice was higher on Tuesday. It rose by 2.4% within the past day to reach $110,000. While some indicators are still positive, others remain negative. pointed to a local bottomOther metrics indicated that the BTC Market Structure remained “fragile,” According to Glassnode.

Bitcoin traders: “defensive stance” 

Glassnode’s data indicates that Bitcoin spot demand has been subdued in the last week. Trading volume fell to $7.7 Billion from $8.5 Billion, which is a decrease of 9%.

Drop in Spot Volume “signals waning investor participation,” Market intelligence is a firm that provides market information. said In its Weekly Market Pulse Report, the Weekly Market Pulse reports that lower volume reflects “weaker conviction” Many traders are interested in buying and selling.

The spot Cumulative volume delta (CVD), which indicates a slight improvement in the selling pressure. “overall spot metrics point to a fragile demand,” Glassnode add-on

Market participants were cautious in their positioning on the futures market. open interest The (OI), which was $45.8billion, decreased to $45billion. It was evident that traders were reducing their leverage demand after the drawdown from all-time highs. 

The funding rate for futures fell to $2.8 Billion from $3.8 Billion, indicating a decrease in demand for exposure to long-term markets and a willingness to pay premiums higher to maintain positions. 

Glasnode says:

“Traders appear less willing to extend risk, underscoring a defensive stance after recent volatility.”

Cointelegraph reportedBitcoin institutional investor were retreating, as the demand plummeted to its lowest levels since early April.

Bitcoin Price Levels to Watch

Bitcoin rose 2.45% from its current level of around $110,000 to $107300, after it bounced off Monday’s lower border of the parallel descending channel. 

A resistance was present at the upper border of the channel, which is $110 500. The daily close of the candle above the level will signal the possible break from the downward trend. Next, the liquidity zone between $110,000 and $117,000, which is where the 50-day moving averages are located, would be the next obstacle. simple moving average The 100-day SMA is a standard measurement of the SMA.

To increase their chances, bulls should push the BTC above this zone. recovery toward new all-time highs. 

Watch the levels of support at the bottom. The channel’s middle boundary, $108,000, and the low of Monday around $107300 are the main ones.

If you go below that level, you’ll find the lower boundary, $105,300. This is the last defense line, and if it were to be lost, this would trigger a fall toward the key support level at $100,000.

Michael van de Poppe, founder of MN Capital, said: “clear break” BTC’s new record highs were only possible if BTC reached a value of over $112,000

“Otherwise, I’d be looking at $103Kish for a great opportunity.”

This area is the same as before $BTC.

We’ll reach a new ATH if we break through $112,000.

If I were to do this, it would cost me around $103K for an amazing opportunity.

Gold has yet to reach a new ATH.

What is Bitcoin? pic.twitter.com/JDruy5ba8O

— Michaël van de Poppe (@CryptoMichNL) September 2, 2025

Bitcoin’s liquidity map shows significant clusters in the range of $111,000 and higher on top, but $105,500 to $107,000 less than the current spot price. 

These areas are often localized reversal zones or magnets that act when the market price is near them.

Bitcoin has risen to prominence “liquidity hunt,” said AlphaBTC analyst in a post published on X Tuesday, adding

“Looks like they are coming for that big cluster of shorts 110K-111K, then likely back to run the Monday low and the longs from the weekend.” 

Cointelegraph reportedBitcoin has to quickly reclaim $112,500, the 20-day EMA. Failing to do this will increase the risk of a drop to $105,000 Then, you can go up to $100,000.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.