Key takeaways:
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Bitcoin price recaptures $110,000, but bearish pressure persists.
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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 Cointelegraph 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? pic.twitter.com/JDruy5ba8O
— 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 Cointelegraph 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.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.