Bitcoin Holds the Line at $112K: Eyes on $110K Support Amid Growing Bearish Indicators

Bitcoin has slipped to its lowest point in four weeks, with both on-chain and technical metrics from Glassnode pointing to increasing market fatigue. The digital asset is currently valued at $112,967, having breached the crucial $114,500–$115,000 support area. Over the last week, $92.7 million has flowed out of exchanges, and the Spent Output Profit Ratio (SOPR) has declined, indicating that on-chain transaction profitability is waning Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ]. This downturn has resulted in liquidations exceeding $400 million, and price action is now targeting heavy liquidity zones near $112,000 Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ].

Technical signals reinforce the bearish outlook. The 20-day EMA for Bitcoin has dropped below both the 50-day and converged with the 100-day EMA, a formation typically linked to downward trends Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ]. The Relative Strength Index (RSI) is at 36, approaching oversold levels but not yet showing any bullish reversal. Market participants caution that if $112,000 does not hold, the next support levels could be $110,000 and $108,500 Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ]. The taker buy/sell ratio is currently at -0.79, highlighting dominant selling activity Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ].

On-chain data further highlights weakening confidence. The realized price for short-term holders (STH) stands at $111,400, which is close to the current market price, increasing the likelihood of stop-loss triggers Bitcoin Exhaustion Signals Emerge in Final Week of September [ 2 ]. Analyst Joao Wedson from Alphractal pointed out that Bitcoin’s Sharpe ratio is lower than in 2024, suggesting weaker risk-adjusted returns and less institutional participation despite record highs Bitcoin Exhaustion Signals Emerge in Final Week of September [ 2 ]. Large holders have sold 147,000 BTC in the past month, intensifying downward momentum Bitcoin Q4 2025 Forecast: BTC Could Move $20K Amid Weak … [ 4 ].

Historically, September tends to be a challenging month for

, with the 38th week ranking as the third weakest on record, averaging a 2.25% return Current Week Is the Third Worst Week Historically … [ 3 ]. Data from Deribit points to a "max pain" threshold at $110,000, hinting at further downside potential. Bitcoin’s perpetual funding rates have dropped to 4%, the lowest in a month, reflecting a decrease in speculative trading Current Week Is the Third Worst Week Historically … [ 3 ].

The Federal Reserve’s latest rate reduction did not ignite a rally, as the U.S. Dollar Index (DXY) climbed back to 97.8. Historically, a stronger DXY moves inversely to Bitcoin, raising the risk of renewed selling pressure Bitcoin Exhaustion Signals Emerge in Final Week of September [ 2 ]. Options markets also reflect a bearish stance, with the put/call volume ratio declining as traders secure gains on profitable puts From Rally to Correction - insights.glassnode.com [ 6 ].

Experts warn that the current bull run may be stalling. 10x Research forecasts that Bitcoin could swing by $20,000 in either direction at the start of Q4 2025, with vital support at $109,898 Bitcoin Q4 2025 Forecast: BTC Could Move $20K Amid Weak … [ 4 ]. If buyers can maintain the $112,000 level and spot flows stabilize, a rebound toward $116,000 is possible. However, persistent liquidity sweeps could lead to deeper declines Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ].

Derivatives trading is adding to the market’s instability. Open interest in futures dropped significantly after Bitcoin slipped below $113,000, while perpetual liquidation heatmaps show concentrations between $111,500 and $110,000 Bitcoin (BTC) Price Prediction: Why Is Bitcoin … [ 1 ]. Options open interest is near all-time highs, and peak gamma conditions are amplifying downside swings, with dealers hedging heavily on the bearish side From Rally to Correction - insights.glassnode.com [ 6 ].

Bitcoin’s future direction now depends on institutional appetite and the behavior of holders. ETF inflows, which previously helped absorb supply, have slowed, making the market more fragile. Without new capital entering or stabilization in on-chain data, the threat of further declines remains high From Rally to Correction - insights.glassnode.com [ 6 ].