Key Takeaways
- Bitcoin briefly rose above $112,000 on Wednesday after gaining more than 1% in value.
- Traders are optimistic that BTC will soon reclaim the $117,000 resistance level.
BTC Tops $111K as Market Sentiment Improves
The cryptocurrency market started the week under pressure, with BTC sliding below $110,000 on Monday. Sentiment has since improved, and Bitcoin briefly climbed above $112,000 on Wednesday.
At the time of writing, BTC trades around $111,907 and appears positioned to move higher amid a more positive market tone. Bitcoin set a fresh all-time high in August but has struggled to sustain momentum since then. Analysts are now watching September closely to see how macroeconomic developments and market dynamics influence the leading cryptocurrency.
In an email to Coinjournal, Ruslan Lienkha, Head of Markets at YouHodler, said the main macro drivers for crypto heading into September remain U.S. inflation, interest rate policy, and labor market data. How these factors interact will largely shape overall risk sentiment and, consequently, the direction of both traditional and crypto markets.
On how these events could affect markets, Lienkha commented,
The recent sell-off reflects a combination of macro conditions and long-term positioning by large holders. We are entering the later stages of the current medium-term bull cycle, which naturally encourages early investors—particularly those who have held Bitcoin for a decade or more—to take substantial profits. By contrast, more recent whale entrants are likely to adopt a longer horizon, prepared to weather one or several future cycles. Overall, while whale activity has contributed, the dominant driver remains macro factors such as yields and shifting expectations around Federal Reserve policy.
BTC Eyes $117K Despite Market Volatility
The four-hour BTC/USD chart has shown a bearish and orderly decline, reflecting Bitcoin’s weak performance in recent days. Still, improving momentum indicators suggest the market could reverse soon.
A 49 RSI indicates that BTC is no longer under intense selling pressure, and MACD lines are setting up to confirm a shift toward bullish bias. If the recovery continues, BTC could break above the 4H trendline near $113,850 and press higher to retake the $117,000 resistance level.
Nonetheless, momentum remains tilted to the downside and Bitcoin could face renewed selling pressure. If bearish momentum resumes, BTC may slip below $110,000 again and test support around $107,000.
Investors and traders should monitor macroeconomic releases, Fed communications, and on-chain whale activity to gauge whether the current corrective phase will give way to a sustained rally or extend into deeper consolidation. Risk management remains essential as swings can be sharp in either direction.