Sep 4, 2025
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Bitcoin Consolidates Around $110K as Market Sentiment Remains Fragile
Bitcoin is currently in a consolidation phase around $110,000 following recent selling pressure. Key points include:
- Bulls are defending the $110K level, but momentum has weakened.
- No clear signs of a deeper correction, with historical retracements often serving as resets.
- Analyst Axel Adler describes the market as neutral-bearish, lacking the conviction for a bullish push.
- Current price and derivative flows remain below 50, indicating weakness.
- Any recovery is likely to be limited to technical bounces towards $113K rather than sustained rallies.
Adler identifies two thresholds for a stronger rally: Flow >55 and Price Index >50. Until met, Bitcoin faces risks of retesting support zones.
BTC Holding the Line Above $110K
Bitcoin shows resilience around the $110K–$111K zone, bouncing from lows near $108K but struggling against resistance at the 50-day moving average. Key observations include:
- The long-term support remains intact above the 200-day moving average near $101K.
- Price action indicates a balance where bulls defend demand but bears exert pressure at $112K.
- A decisive breakout above $113K could lead to a retest of $118K.
- Failure to hold $110K may expose BTC to tests of $108K and $105K.
Bitcoin's future direction depends on buyers stabilizing flows and absorbing ongoing selling pressure.