Key takeaways
- Bitcoin briefly rose above $112,000 on Wednesday after gaining more than 1% in value.
- Traders remain optimistic that BTC could soon reclaim the $117,000 resistance level.
BTC tops $111k as market sentiment improves
The cryptocurrency market started the week under pressure, with Bitcoin dipping below the $110,000 mark on Monday. Sentiment has shifted since then, and Bitcoin briefly climbed past $112,000 on Wednesday amid renewed buying interest.
At the time of writing, BTC is trading around $111,907 and appears positioned for a potential rally as market mood brightens. After reaching a new all-time high in August, Bitcoin has struggled to maintain momentum, and analysts are now focused on how September’s data and policy decisions will influence the leading cryptocurrency.
In correspondence with Coinjournal, Ruslan Lienkha, Head of Markets at YouHodler, highlighted that the primary macro drivers for crypto heading into September are U.S. inflation, interest rate policy and labor market indicators. The interplay of these variables will largely determine risk appetite across both traditional and crypto markets.
Explaining how these elements are shaping the market, Lienkha said:
The recent pullback results from a mix of macro conditions and profit-taking by long-term holders. We are entering the latter phase of the current medium-term bullish cycle, which often prompts early investors—many holding Bitcoin for a decade or more—to lock in significant gains. Newer large holders, by contrast, tend to be more patient and may hold through multiple cycles. While whale activity plays a role, the dominant forces remain macro trends such as yields and evolving expectations about Federal Reserve policy.
BTC eyes $117k despite market volatility
On the BTC/USD four-hour chart, recent underperformance has produced a bearish setup, but technical signals suggest this could change as momentum indicators stabilize.
An RSI near 49 indicates selling pressure has eased, and MACD lines appear poised to signal a shift toward bullish momentum. If buyers persist, Bitcoin could first clear the 4-hour trendline at approximately $113,850 before attempting to reclaim the $117,000 resistance zone.
That said, downside pressure is still present. If momentum reverses, Bitcoin could slip back below $110,000 and test support around $107,000. Traders will be watching macroeconomic releases and Fed guidance closely, as these factors are likely to determine whether BTC resumes an upward trend or faces further consolidation.