Crypto markets are bouncing back strongly this week, with total capitalization climbing close to $3.92 trillion after a sharp sell-off earlier. Bitcoin is leading the charge, jumping 2.19% to trade around $113,336, but analysts say this isn’t enough to confirm strength.
With September approaching, historically a bearish month for crypto, traders remain cautious.
Wondering what to expect next?
Bitcoin Selling Pressure Near $113.6K
Despite the bullish surge, Bitcoin is struggling around the key $115,000 support zone, which traders call a “make-or-break” level.
According to Glassnode, BTC faces resistance near $113,600, which is the average price paid by short-term holders over the last three months. Since many of these investors are still under pressure, they may sell at this level to break even.
This makes $113,600 a key barrier to watch, while $115,600, the one-month cost basis, adds another resistance point if momentum continues upward.
Three Possible Scenarios Ahead
On top of it, Analysts note that Bitcoin’s next move depends heavily on whether key support levels hold.
Dip Before Pump – If BTC slips, it could fall to $108K–$104K, flushing out overleveraged bulls. From there, a strong rebound might push it toward $130K, with the bull market support band (BSB) near $106K acting as the springboard.
Holding the Line – On the other hand, if BTC defends the $111K–$112K zone, it could quickly reclaim $114.5K and move higher, especially if rate cuts add momentum.
Worst-Case Bear Signal – The real danger lies in a deeper drop. Falling toward the 50-week SMA ($92K–$98K) would signal a bearish shift. Historically, slipping below this level has marked cycle tops, as seen in 2017 and 2021.
Bitcoin ETFs Show Declining Inflows
Adding more bearish pressure, Bitcoin ETFs have seen declining inflows, suggesting waning confidence among institutional investors. Over the past two weeks, nearly $1.5 billion flowed out, while inflows dropped to just $81.4 million as of August 27.
On the flip side, BlackRock boosted Ethereum ETFs with a $262.6 million investment on the same day, driving total inflows over $307 million and outpacing Bitcoin’s activity.
