Key Points:
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Bitcoin’s value has risen above $110,000 again, but sellers are still putting pressure on the price.
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For BTC to stay above $100,000, it needs to establish a solid support level in the $110,500-$112,000 range.
The price of Bitcoin (BTC) saw an increase on Tuesday, gaining 2.4% in the last day and surpassing the $110,000 mark. While some indicators suggested a possible short-term bottom, insights from Glassnode indicated that the overall market structure for BTC remains somewhat unstable.
Traders Taking a Cautious Approach to Bitcoin
Data from Glassnode revealed that demand for Bitcoin on the spot market has been weaker lately. Trading volume has decreased from $8.5 billion to $7.7 billion over the past week, which is a 9% drop.
In their recent Weekly Market Pulse report, the market analysis firm stated that this decline in spot volume suggests that fewer investors are actively participating. They added that lower volumes indicate a reduced level of confidence among traders.
Although the spot Cumulative Volume Delta (CVD) has improved slightly, signaling a decrease in selling pressure, Glassnode emphasized that “overall spot metrics point to a fragile demand.”
The futures market also reflected a sense of caution, with futures open interest (OI) decreasing from $45.8 billion to $45 billion. This implies that some positions were being closed, and there was a move towards less risky strategies. Traders seem to be reducing their use of leverage after the recent price decline from record highs.
Funding rates in the futures market also fell, from $3.8 billion to $2.8 billion. This indicates a lower demand for long positions and a hesitation to pay higher fees to maintain those positions.
According to Glasnode:
“Traders appear less willing to take on additional risk, showing a cautious approach after the recent volatility.”
As previously reported by Cointelegraph, institutional investors have been reducing their involvement in Bitcoin, with demand dropping to its lowest point since early April.
Important Bitcoin Price Levels to Watch
On Monday, Bitcoin rebounded from the lower edge of a descending parallel channel at $107,300, increasing by 2.45% to reach its current level around $110,000.
The price is currently encountering resistance at the upper boundary of the channel, near $110,500. A daily close above this level could suggest a potential breakout from the ongoing downtrend. The next significant hurdle lies within the $110,000-$117,000 range, where the 50-day and 100-day simple moving averages (SMA) converge.
For a sustained recovery towards new record highs, buyers need to drive the price of BTC above this zone.
On the downside, the immediate support levels to watch are the middle boundary of the channel at $108,000 and Monday’s low around $107,300.
Below that, the channel’s lower boundary at $105,300 provides a final defense line. If this level is breached, it could trigger a decline towards the key support level at $100,000.
According to MN Capital Founder Michael van de Poppe, Bitcoin needs a “clear break” above $112,000 to reach 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? pic.twitter.com/JDruy5ba8O
— Michaël van de Poppe (@CryptoMichNL) September 2, 2025
In the meantime, analysis of Bitcoin liquidity reveals notable concentrations of liquidity between $110,000 and $111,000 on the upside, and between $105,500 and $107,000 below the current price.
Traders should closely monitor these areas, as they frequently act as local reversal points or attract price movement as the price approaches them.
Analyst AlphaBTC stated in a Tuesday post on X that Bitcoin is currently on a “liquidity hunt,” 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 previously reported, Bitcoin must quickly reclaim the 20-day EMA at $112,500. Failure to do so will increase the likelihood of a decline to $105,000, followed by a further drop to $100,000.
This article should not be considered as financial advice. All investments carry risk, and it’s important to do your own research before making any decisions.