Are BTC Buyers Making a Comeback?

Bitcoin buyers are showing renewed strength after weeks of price swings, with key on-chain signals turning positive as Bitcoin found support around $110K. This has led to an increase in buying activity and raised the possibility of new weekly highs. Additionally, the growing interest from institutional investors is adding stability to Bitcoin’s support levels.

Bitcoin’s open interest has turned positive, signaling a rise in buying demand as recent dip-buying has established strong support levels. Data from Coinglass reveals that over $280 million in liquidations occurred in the past 24 hours, with buyers accounting for around $264 million of closed positions. CryptoQuant’s on-chain data suggests that large-scale selling has not completely taken over the market yet, offering hope for a potential rebound.

Despite hitting an all-time high of $124K, Bitcoin is currently experiencing a pullback phase. While big whales are holding back, smaller holders with up to 10 BTC are steadily accumulating. Some traders remain cautious about Bitcoin’s future price movements, especially after BTC/USD dropped to its lowest level since early July.

Bitcoin’s open interest has seen a 0.97% increase to $85.5 billion, indicating higher trading activity and growing volatility. This could pave the way for Bitcoin to break above nearby resistance levels. Last week, Fed Chair Jerome Powell’s shift to a more dovish tone boosted risk assets like Bitcoin, but excitement has waned as investors await more inflation data ahead of the mid-September rate decision.

Looking ahead, the BTC price currently trades at $112,434, with buyers expected to defend the $110,000-$112,000 support zone. A bounce from this level could see BTC/USDT rise towards the 20-day EMA ($113,500) on the 4-hour chart. A daily close above this level might indicate sideways trading between $110,000 and $118,000. However, a failure to break above the 20-day EMA could signal seller control, potentially leading to a drop to $105,000 and even $100,000.

The RSI is attempting to recover above the midline at level 42, but further resistance could result in a sharp decline on the chart. Overall, Bitcoin’s price movements will continue to be influenced by on-chain signals, institutional interest, and macroeconomic factors in the coming days.