Key takeaways
- Bitcoin briefly topped $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 $111,000 as market sentiment improves
The cryptocurrency market endured a rough start to the week, with BTC dipping below $110,000 on Monday. Sentiment improved midweek, however, and Bitcoin briefly climbed above $112,000 on Wednesday.
At the time of writing, BTC is trading at $111,907 and could push higher as market sentiment turns positive. Bitcoin reached a fresh all-time high in August but has struggled since; analysts are now focused on what September may bring for the leading cryptocurrency.
In an email to Coinjournal, Ruslan Lienkha, head of markets at YouHodler, said the main macroeconomic drivers for cryptocurrencies heading into September remain U.S. inflation, interest-rate policy and labor-market data. The interaction of these factors will largely shape overall risk appetite and therefore the trajectory of both traditional markets and crypto.
On how those events might influence the market, Lienkha explained:
The recent pullback reflects a mix of macroeconomic conditions and long-term positioning by major holders. We are in 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 significant profits. Newer whale entrants, by contrast, are more likely to adopt a longer-term horizon and hold through one or several future cycles. Overall, while whale activity has contributed to price moves, the primary drivers remain macro factors such as yields and shifting expectations around Federal Reserve policy.
BTC eyes $117,000 despite market volatility
The BTC/USD 4-hour chart shows a bearish and efficient decline after Bitcoin underperformed in recent days. Still, the market could reverse once momentum indicators improve.
A 49 RSI indicates selling pressure has eased, and MACD lines would need to confirm a shift toward bullish bias. If the recovery continues, BTC could break the 4H trendline at $113,850 before pushing higher to reclaim the $117,000 resistance level.
That said, momentum remains tilted to the downside and Bitcoin could face renewed selling pressure. If that happens, BTC may slip back below $110,000 and retest the $107,000 support level.