Bitcoin Price must Recover $112K in order to Stop Consolidation and Prevent Crash

The key takeaways

• Bitcoin has dropped by 14% since the all-time $124.500 high. This led to a decrease in BTC profits, signaling market exhaustion.

• To start higher, you must overcome the $112,000 to $116,000 zone of supply.

BitcoinBTC() fell 14%, from its all-time $124,500 high, to $107,400, a 7-week-low, on August 30. This market correction was a transition from widespread distribution to net. “euphoric phase” According to a new study, it’s time to chill out.

Bitcoins’ drop from $107,000 to $94,000 suggests “exhaustion”

It is important to note that the word “you” means “you”. rally to new highs in mid-August According to a report, Bitcoin has pushed 100 percent of its supply into profits. data Glassnode is a great alternative to Glassnode. 

In order to sustain these periods, it is necessary that capital flows are constant and strong enough in magnitude to compensate for the profit-taking. However, this situation rarely persists.

“This behaviour is often captured by the 0.95 quantile cost basis, the threshold above which 95% of supply is in profit,” Glassnode said The Week Onchain Report has just published its newest edition.

Related: Bitcoin set to beat ‘red September’ dip for third straight year

More than 95 percent of supply was in profit during the most recent phase. 

Bitcoin dropped below the band again on August 19th. “demand finally showed signs of exhaustion,” The market intelligence company added.

At present, 90% of Bitcoin in supply is in profit,  which is between the 0.85 and 0.95 quantile cost basis, or in the $104,100–$114,300 range. 

“Historically, this zone has acted as a consolidation corridor following euphoric peaks, often leading to a choppy sideways market,” Glassnonde wrote, adding:

“Breaking below $104.1K would replay the post-ATH exhaustion phases seen earlier in this cycle, whereas a recovery above $114.3K would signal demand finding its footing and reclaiming control of the trend.”

The percentage of the short-term supply that was in profit dropped from 90% to 42%, which is a classic cooling down for the market.

Glassnode is further explained.

“Such sharp reversals typically provoke fear-driven selling from top buyers, which is then often followed by exhaustion of the very same sellers.”

Recent developments in the field of BTC price rebound to $112,000More than 60% of the short-term supply has returned to profit. It is important to note that this comeback remains fragileGlassnide:

“Only a sustained recovery above $114K–$116K, where over 75% of short-term holder supply would return to profit, could provide the confidence necessary to attract new demand and fuel the next leg higher.”

Bitcoin’s major resistance is $112,000

Bitcoin’s relief rally stalled at $112,000 The bears have defended this level aggressively multiple times during the week. 

In the graph below, we can see that the price of the oil is being held back by the zone of supply between $111700-$115500. This area also includes the simple moving average 100-day (SMA), and the simple moving Average 50-day.

The bulls need to turn this support area into a new base in order to confirm that the correction is over, otherwise they risk further declines.

Bitcoin “been consolidating below its previous local range and has failed to retake it,” Daan crypto trades, a trading analyst. said In an X-post on Thursday. 

“A move back above $112K and holding there would be good in the short term.”

Cointelegraph reportedThe 20-day moving average exponential (EMA), which is $112 438, provides a strong resistance. Bitcoin price must overcome Confirmation of higher lows

This would indicate that the correction phase is over. BTC/USD might then make an attempt to a rally toward the all-time highs.

The information in this article does not constitute investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making any kind of a trading or investing decisions.