Bitcoin Climbs $110K, But the Market’s as Fragile as a Tea Cup!

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Key takeaways:

  • Bitcoin price recaptures $110,000, but bearish pressure persists. 

  • BTC must flip the $110,500-$112,000 zone into new support to avoid a deeper correction toward $100,000. 

Bitcoin (BTC) price was up on Tuesday, rising 2.4% over the past 24 hours to trade above $110,000. Still, while some indicators pointed to a local bottom, other metrics suggested the BTC market structure remained “fragile,” according to Glassnode. 🧊

Bitcoin traders adopt “defensive stance” 

Bitcoin’s spot demand was subdued over the past week, with trading volume falling to $7.7 billion from $8.5 billion, a 9% decrease, Glassnode data shows. 🥣

The decline in spot volume “signals waning investor participation,” the market intelligence firm said in its latest Weekly Market Pulse report, adding that lower volumes reflect “weaker conviction” among traders. 🤷‍♂️

While spot Cumulative Volume Delta (CVD) has improved slightly, indicating easing selling pressure, “overall spot metrics point to a fragile demand,” Glassnode added. 🧩

The futures market showed cautious positioning, with futures open interest (OI) decreasing to $45 billion from $45.8 billion. This suggested moderate unwinding of positions and a shift toward risk-off behavior, as traders showed reduced demand for leverage following the drawdown from all-time highs. 🚫

Futures funding rates dropped to $2.8 billion from $3.8 billion, signalling less demand for long exposure and unwillingness to pay higher premiums to keep positions open. 📉

Glasnode said:

“Traders appear less willing to extend risk, underscoring a defensive stance after recent volatility.”

As CryptoMoon reported, Bitcoin institutional investors were stepping back, with demand plunging to its lowest level since early April. 🐢

Key Bitcoin price levels to watch

Bitcoin bounced off the lower boundary of the descending parallel channel at $107,300 on Monday, rising 2.45% to the current levels around $110,000. 

The price was fighting resistance from the upper boundary of the channel at $110,500. A daily candlestick close above this level would signal a possible breakout from the downtrend, with the next barrier at the $110,000-$117,000 liquidity zone, where both the 50-day simple moving average (SMA) and the 100-day SMA are.

Bulls must push BTC price above this area to increase the chances of a recovery toward new all-time highs. 🚀

The middle boundary of the channel at $108,000 and Monday’s low around $107,300 were the immediate support levels to watch on the downside.

Below that, the channel’s lower boundary at $105,300 provided a last line of defense, which, if lost, would likely trigger a drop toward the key support level at $100,000. 🛑

MN Capital Founder Michael van de Poppe said that a “clear break” above $112,000 was needed to take BTC to new all-time highs.

“Otherwise, I’d be looking at $103Kish for a great opportunity.“

The area remains the same for $BTC.

If we can clearly break $112K, we’ll be onto a new ATH.

Otherwise, I’d be looking at $103Kish for a great opportunity.

Interestingly enough, Gold is yet to make a new ATH.

When Bitcoin?

– Michaël van de Poppe (@CryptoMichNL) September 2, 2025

Meanwhile, the Bitcoin liquidity map revealed significant liquidity clusters between $110,000 and $111,000 on the upside, and $105,500-$107,000 below spot price. 

Traders need to keep an eye out for those areas as they often act as local reversal zones and/or magnets when the price gets close to them. 🧭

Bitcoin is on a “liquidity hunt,” said analyst AlphaBTC in a Tuesday post on X, adding:

“Looks like they are coming for that big cluster of shorts 110K-111K, then likely back to run the Monday low and the longs from the weekend.” 

As CryptoMoon reported, Bitcoin needs to quickly reclaim the 20-day EMA at $112,500; failure to do so will increase the possibility of a drop to $105,000 and then to $100,000. 🧨

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2025-09-02 14:39