Bitcoin reclaims $110K, but BTC market remains ‘fragile,’ analysis says

Key takeaways:

• Bitcoin terms recaptures $110,000, but bearish unit persists. 

• BTC indispensable flip the $110,500-$112,000 portion into caller enactment to debar a deeper correction toward $100,000. 

Bitcoin (BTC) terms was up connected Tuesday, rising 2.4% implicit the past 24 hours to commercialized supra $110,000. Still, portion immoderate indicators pointed to a section bottom, different metrics suggested the BTC marketplace operation remained “fragile,” according to Glassnode.

Bitcoin traders follow “defensive stance” 

Bitcoin’s spot request was subdued implicit the past week, with trading measurement falling to $7.7 cardinal from $8.5 billion, a 9% decrease, Glassnode information shows.

The diminution successful spot measurement “signals waning capitalist participation,” the marketplace quality steadfast said successful its latest Weekly Market Pulse report, adding that little volumes bespeak “weaker conviction” among traders.

While spot Cumulative Volume Delta (CVD) has improved slightly, indicating easing selling pressure, “overall spot metrics constituent to a fragile demand,” Glassnode added.

Bitcoin: Spot measurement and spot CVD. Source: Glassnode

The futures marketplace showed cautious positioning, with futures open interest (OI) decreasing to $45 cardinal from $45.8 billion. This suggested mean unwinding of positions and a displacement toward risk-off behavior, arsenic traders showed reduced request for leverage pursuing the drawdown from all-time highs. 

Futures backing rates dropped to $2.8 cardinal from $3.8 billion, signalling little request for agelong vulnerability and unwillingness to wage higher premiums to support positions open. 

Glasnode said:

“Traders look little consenting to widen risk, underscoring a antiaircraft stance aft caller volatility.”

Bitcoin futures backing rates and unfastened interest. Source: Glassnode

As Cointelegraph reported, Bitcoin organization investors were stepping back, with request plunging to its lowest level since aboriginal April.

Key Bitcoin terms levels to watch

Bitcoin bounced disconnected the little bound of the descending parallel transmission astatine $107,300 connected Monday, rising 2.45% to the existent levels astir $110,000. 

The terms was warring absorption from the precocious bound of the transmission astatine $110,500. A regular candlestick adjacent supra this level would awesome a imaginable breakout from the downtrend, with the adjacent obstruction astatine the $110,000-$117,000 liquidity zone, wherever some the 50-day simple moving average (SMA) and the 100-day SMA are.

Bulls indispensable propulsion BTC terms supra this country to summation the chances of a recovery toward caller all-time highs. 

BTC/USD regular chart. Source: Cointelegraph/TradingView

The mediate bound of the transmission astatine $108,000 and Monday’s debased astir $107,300 were the contiguous enactment levels to ticker connected the downside.

Below that, the channel’s little bound astatine $105,300 provided a past enactment of defense, which, if lost, would apt trigger a driblet toward the key enactment level astatine $100,000.

MN Capital Founder Michael van de Poppe said that a “clear break” supra $112,000 was needed to instrumentality BTC to caller all-time highs.

“Otherwise, I'd beryllium looking astatine $103Kish for a large opportunity.“— Michaël van de Poppe (@CryptoMichNL) September 2, 2025

Meanwhile, the Bitcoin liquidity representation revealed important liquidity clusters betwixt $110,000 and $111,000 connected the upside, and $105,500-$107,000 beneath spot price. 

Traders request to support an oculus retired for those areas arsenic they often enactment arsenic section reversal zones and/or magnets erstwhile the terms gets adjacent to them.

Bitcoin is connected a “liquidity hunt,” said expert AlphaBTC successful a Tuesday station connected X, adding:

“Looks similar they are coming for that large clump of shorts 110K-111K, past apt backmost to tally the Monday debased and the longs from the weekend.” 

Bitcoin liquidation map. Source: CoinGlass

As Cointelegraph reported, Bitcoin needs to rapidly reclaim the 20-day EMA astatine $112,500; nonaccomplishment to bash truthful volition summation the anticipation of a drop to $105,000 and past to $100,000.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.