After weeks of price swings, Bitcoin buyers are showing fresh strength. In the past few hours, key on-chain signals have turned positive as Bitcoin found support around $110K. This has pushed buying activity higher, increasing the chance of new weekly highs. On top of that, rising interest from institutional investors is adding even more stability to Bitcoin’s support levels.
Bitcoin’s Open Interest Turns Positive
Bitcoin’s buying demand is rising as recent dip-buying has built strong support levels. This has turned several on-chain indicators positive. Data from Coinglass shows that in the past 24 hours, Bitcoin saw over $280 million in liquidations, with buyers accounting for around $264 million of those positions being closed.
According to on-chain data from CryptoQuant, there are still signs that Bitcoin bulls can stay hopeful about a rebound. The platform noted that large-scale selling, or distribution, hasn’t fully taken over the market yet.
After hitting an all-time high of $124K, Bitcoin is now in a pullback phase that could last a bit longer. Interestingly, while big whales are holding back, smaller holders with up to 10 BTC are still steadily accumulating.
Some traders see little reason to expect Bitcoin’s bull market to fully return. Those with a cautious outlook on future price movements have only grown more certain after BTC/USD dropped to its lowest level since early July.
Also read: Why Bitcoin, ETH, and XRP Price Are Down Today
Bitcoin’s open interest has climbed in recent days. According to Coinglass, it rose by 0.97% to $85.5 billion. This increase signals higher trading activity and growing volatility, which could open the door for Bitcoin to break above nearby resistance levels.
Last week, Fed Chair Jerome Powell unexpectedly shifted from his earlier hawkish tone, boosting hopes for a potential rate cut. Risk assets like Bitcoin jumped right away, but since then, the excitement has faded as investors wait for more inflation data ahead of the mid-September rate decision.
What’s Next for Bitcoin Price?
Bitcoin dropped below the EMA trend lines recently as buyers failed to meet demand around resistance channels. However, Bitcoin has built a strong support around the $110K level. As of writing, BTC price trades at $112,434, declining over 1.65% in the last 24 hours.
Buyers are expected to defend the zone between $110,000 and $112,000. If the price bounces from this support, BTC/USDT could easily rise toward the 20-day EMA ($113,500) on the 4-hour chart. A daily close above this level would suggest Bitcoin might trade sideways between $110,000 and $118,000 for a while.
On the other hand, if Bitcoin fails to break above the 20-day EMA and instead falls below $110K, it would show sellers are in control. In that case, the price could drop quickly to $105,000 and possibly even to the key psychological level of $100,000.
Currently, the RSI is trying to recover above the midline as it trades at level 42. If buyers face any further resistance, we might see a steep decline on the chart.
