Bitcoin kept climbing after bouncing cleanly off the $110,000 support level, sparking a short-lived rally that nudged it toward the next big test at $112k. Traders seemed cautiously upbeat, feeding off rising expectations that the US Federal Reserve might finally trim interest rates this month. It wasn’t just Bitcoin stretching its legs. The wider crypto market shook off the jitters too, gaining over 1.5% and edging within arm’s reach of the $4 trillion mark. Sentiment, while not exactly brimming with euphoria, was clearly in better shape than the day before. The Fear & Greed Index crept back to 55, settling into the lower end of the ‘Greed’ zone. Altcoins had a slower start. Price action remained muted through most of the session, with little excitement. But by late Asian trading hours, a quiet shift was underway, most tokens had flipped into the green, clawing back gains as bulls tried to capture the $112k support. Why is Bitcoin price going up? Bitcoin is finding its footing again, rising not just on technical strength but also on the back of growing belief that the US central bank is finally ready to pivot. As of Tuesday, traders are pricing in more than a 90% chance that the Federal Reserve will lower interest rates by 25 basis points at the conclusion of its two-day policy meeting on September 17. That looming cut has stirred a mild risk-on mood across financial markets, nudging investors back into Bitcoin and other higher-risk assets. This has sparked a mild risk-on shift across markets, giving Bitcoin just enough lift to break out of its recent slump. Lower borrowing costs generally boost demand for risk assets, and Bitcoin, as always, is among the first to respond. Markets aren’t just betting on one cut, they’re expecting at least two rate reductions by the end of 2025. That kind of dovish outlook tends to favor speculative assets like BTC, especially in an environment where traditional yields might soon be heading lower. Eyes are now turning to a packed calendar of US economic reports this week, with Wednesday’s JOLTS Job Openings leading the lineup. That will be followed closely by the ADP private payroll data and ISM’s Services PMI on Thursday. These releases will culminate in Friday’s Nonfarm Payrolls report, a key barometer for labor market health. If the numbers come in weak, it could cement the Fed’s rate-cut narrative. That possibility alone is keeping markets primed. Traders are hungry for confirmation, but they’ve already started positioning. Spot Bitcoin ETFs saw a significant resurgence on Tuesday, with net inflows hitting $332.7 million, the highest in two weeks, according to CoinGlass. On the technical front, Bitcoin has broken above a stubborn two-week downtrend. Trader Rekt Capital flagged the move earlier Tuesday, noting that price was pushing through multiple levels of resistance. According to Rekt’s analysis, a daily close above that line, or even a successful retest, would confirm the breakout and likely energize bulls further. Rekt Capital @rektcapital · Follow #BTC is attempting to break its two-week old Daily DowntrendDaily Close above the Downtrend and/or post-breakout retest would confirm the breakout $BTC #crypto #Bitcoin 8:26 PM · Sep 2, 2025 1.4K Reply Copy link Read 84 replies Crypto analyst Michaël van de Poppe highlighted the importance of the $112,000 mark as a potential resistance flip. “Very keen to see what $BTC can do at this resistance,” he wrote . So far, Bitcoin seems to be holding just above it. That’s giving bulls room to breathe, at least for now. What’s next for Bitcoin price? With Bitcoin holding above $112,000, traders are watching for a clean break toward $112,700, a level marked as crucial by several analysts. According to well-followed market commentator Ted Pillows, $112,700 is currently acting as a liquidity magnet, with dense clusters of short positions and sell orders stacked just above it, making it a critical battleground for bulls attempting to extend the rally. Others, like ZYN, are watching the $112.5k level, marking it as the final barrier in what he sees as a three-stage structure. BTC/USDT 8h price chart. Source: ZYN on X. In his view, Bitcoin has already cleared accumulation and is nearing the end of its “manipulation” phase. A confirmed breakout from this range, he says, would trigger the long-awaited “expansion” leg. Adding more weight to this zone is the growing pile of short positions sitting just above. Analyst Crypto Seth pointed to more than $15 billion worth of shorts stacked between $115k and $120k, noting that a squeeze could erupt if Bitcoin pushes higher. Crypto Seth @seth_fin · Follow This $BTC short squeeze will be biblical🙏 $15B+ in shorts and growing. 5:48 PM · Sep 3, 2025 915 Reply Copy link Read 70 replies At the same time, on-chain data shows long-term holders (LTHs), wallets that typically remain inactive, have started moving coins again. According to Glassnode’s Binary Spending Indicator, activity from older wallets has spiked. Historically, this kind of behavior tends to surface near local tops or just before key turning points in the cycle. Some analysts, including the team at Bitcoinsensus, suggest this may be early “sell-the-news” positioning. With expectations high for a Fed rate cut, whales could be preparing to exit before the rest of the market catches on. There’s also been a noticeable decline in the average Bitcoin balance held by large wallets. Entities holding between 100 and 10,000 BTC are now sitting on around 488 BTC each, a level not seen since December 2018. That shift started in November 2024 and hasn’t reversed since. It likely signals redistribution, coins flowing from long-time holders to newer, more active market participants. According to David Bailey, CEO of Nakamoto, whale sell pressure has capped Bitcoin’s momentum, and the rally will likely resume once selling pressure subsides. When writing, Bitcoin was exchanging hands at $112,245, up 1.3% in the past 24 hours. Altcoin market Over the past 24 hours, the altcoin market cap initially dipped from $1.72 trillion to $1.69 trillion, but later rebounded to exceed $1.75 trillion, securing gains of 1.7% over the day. Ethereum (ETH), the largest altcoin in the market, rose 3% hovering over $4,460 as of press time, while other major altcoins holding the largest shares in the market, such as XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Tron (TRX), posted gains ranging between 1-4%. Among the top 100 altcoins, the leading gainers were MemeCore (M), which recorded a double-digit surge of 15%, followed by OKB (OKB) and Maple Finance (SYRUP), which gained 8.7% and 8.5% respectively. Source: CoinMarketCap MemeCore : While no immediate catalyst for MemeCore’s (M) gains today could be identified, its gains were likely supported by investor hype and speculation surrounding the project’s recent partnership with D-Pump, a web3 token launch platform. The partnership will reportedly focus on ecosystem interconnection, technical collaboration, and market expansion, key pillars that aim to empower the meme economy and promote the broader adoption of on-chain assets across both platforms. Maple Finance: SYRUP rallied today partly due to the rapid growth of SyrupUSDC, its yield-bearing stablecoin, which is close to hitting $1 billion in market cap just three months post-launch. The token’s listing on Upbit, one of the leading exchanges in South Korea, also supported its gains. OKB : OKB token’s gains were likely driven after the token gained increased visibility when the Dutch central bank slapped a large fine on the exchange for offering its services in the Netherlands without registering with local financial watchdogs. While usually adverse, these developments can still bring the token into broader discussion among market participants, with speculative trading and Bitcoin’s recovery rally likely adding to the gains. The post Bitcoin holds above $112K as Fed cut bets rise; MeMecore jumps 15% appeared first on Invezz
