Bitcoin News Today: Bitcoin's Critical Resistance Levels Could Decide Its Next Major Move

The global cryptocurrency market has experienced a downturn on August 29, with Bitcoin and several major altcoins recording declines in price. The broader crypto market cap has climbed close to $3.92 trillion following a recent sell-off, but Bitcoin remains under pressure near key resistance levels. As of the latest data, Bitcoin traded at approximately $113,336, having increased by 2.19% from earlier in the week. However, analysts suggest this rebound does not confirm a strong bullish trend, as the price remains constrained by critical support and resistance zones [1].

Bitcoin faces a key resistance level near $113,600, a price point that aligns with the average cost basis of short-term holders over the past three months. This level is considered a potential barrier where selling pressure could intensify as investors look to break even. Another critical resistance point is at $115,600, which represents the one-month cost basis for investors. Should Bitcoin manage to break through these levels, it could potentially regain momentum and push toward higher levels. Conversely, failure to hold above these thresholds may lead to a retracement [1].

Analysts have outlined three potential scenarios for Bitcoin's price movement. A first scenario involves a short-term dip to the $104,000–$108,000 range, which could flush out overleveraged bullish positions before a potential rebound toward $130,000. A second scenario envisions Bitcoin defending the $111,000–$112,000 support zone, allowing it to reclaim $114,500 and possibly move higher if macroeconomic conditions, particularly interest rate cuts, provide tailwinds. The third, and most bearish, scenario involves a deeper decline toward the 50-week simple moving average (SMA), estimated at between $92,000 and $98,000. This level, historically associated with cycle tops in 2017 and 2021, could signal a broader bearish shift in the market [1].

Further bearish signals have emerged from the performance of Bitcoin ETFs, which have experienced declining inflows in recent weeks. Over the past two weeks, nearly $1.5 billion in outflows were recorded, while inflows dropped to just $81.4 million as of August 27. This trend indicates waning institutional confidence in Bitcoin as an investment vehicle. In contrast, Ethereum ETFs saw significant inflows, including a $262.6 million investment by BlackRock on the same date, pushing total inflows to over $307 million [1].

Market sentiment remains cautious as September approaches, a historically bearish month for cryptocurrency. Peter Schiff, a well-known economist, has predicted a major price drop for Bitcoin, forecasting a potential slide to as low as $75,000 [3]. While such predictions are speculative and should be taken with caution, they reflect the ongoing volatility and uncertainty that characterize the crypto market. Investors are advised to closely monitor key support and resistance levels, as well as macroeconomic indicators such as interest rate decisions and ETF activity, to make informed decisions.

Source: [1] Will Bitcoin Price Drop Below $100K (https://www.bitget.com/news/detail/12560604935809)