Bitcoin consolidates between $104,000 and $116,000 as market faces critical decision Point

Bitcoin (BTC) trades wrong a consolidation scope betwixt $104,000 and $116,000, with on-chain information revealing captious levels that could find the adjacent directional move.

According to a Sept. 4 report by Glassnode, Bitcoin entered a volatile downtrend pursuing its mid-August all-time high, declining to $108,000 earlier rebounding toward existent levels.

The UTXO Realized Price Distribution shows investors accumulated dursng the pullback, filling the $108,000-$116,000 “air gap” done accordant dip-buying behavior.

The UTXO Realized Price Distribution illustration shows Bitcoin accumulation concentrated successful the $108,000-$116,000 scope pursuing the caller terms diminution from all-time highs. Image: Glassnode

The existent trading scope corresponds to the 0.85 and 0.95 quantile outgo ground levels, ranging from $104,100 to $114,300. Historically, this portion acts arsenic a consolidation corridor pursuing euphoric peaks, often producing choppy sideways markets.

Breaking beneath $104,100 would replay post-ATH exhaustion phases seen earlier this cycle, portion betterment supra $114,300 would awesome renewed request control.

Short-term holder trends

Short-term holders look mounting unit wrong the range, with their nett percent collapsing from supra 90% to 42% during the diminution to $108,000.

The crisp reversal typically triggers fear-driven selling from caller buyers earlier seller exhaustion enables rebounds.

Currently, implicit 60% of short-term holders person returned to profit, representing a neutral positioning compared to caller extremes.

Short-term holder profitability dropped sharply successful August 2025 earlier recovering to existent levels astir 60%, indicating neutral marketplace sentiment. Image: Glassnode

Only sustained betterment supra $114,000-$116,000, wherever implicit 75% of short-term holder proviso would execute profitability, could reconstruct assurance indispensable to pull caller demand.

Futures marketplace backing rates are sitting astatine $366,000 per hour, positioned neutrally betwixt the established $300,000 baseline and overheated levels exceeding $1 cardinal seen successful March and December 2024.

Further compression beneath the threshold would corroborate broader request deterioration crossed derivatives markets.

TradFi request contraction

Spot exchange-traded money (ETF) flows uncover weakening organization request from traditional concern (TradFi) channels.

Since April, Bitcoin ETF inflows person averaged implicit 3,000 BTC regular but cooled done July to the existent 14-day mean of conscionable 540 BTC. The contraction mirrors akin patterns successful Ethereum (ETH) ETFs, wherever inflows dropped from 56,000-85,000 ETH regular to 16,600 ETH.

Bitcoin ETF flows importantly outweighed CME futures positioning changes, indicating TradFi investors chiefly expressed directional request done spot vulnerability alternatively than derivatives strategies.

This differs from Ethereum markets, wherever CME unfastened involvement changes represented implicit 50% of cumulative ETF inflows, suggesting greater usage of cash-and-carry arbitrage strategies.

The range-bound trading follows Bitcoin’s 3rd multi-month euphoric signifier of the existent cycle, characterized by overwhelming terms momentum pushing the bulk proviso into profit.

Such periods necessitate persistent superior inflows to offset continuous profit-taking, a dynamic that has historically proved unsustainable successful the agelong term.

Breaking beneath $104,000 risks triggering post-ATH exhaustion, with a imaginable downside toward the $93,000-$95,000 levels, based connected erstwhile rhythm patterns.

The station Bitcoin consolidates betwixt $104,000 and $116,000 arsenic marketplace faces captious determination Point appeared archetypal connected CryptoSlate.