Bitcoin Price Analysis: BTC Drops Back To $110,000 As Investor Sentiment Cools
Bitcoin (BTC) returned to bearish territory during the ongoing session after failing to stay above $112,000. The flagship cryptocurrency reached an intraday high of $112,600 on Wednesday but lost momentum, ultimately settling at $111,756.
BTC is down 1.20% during the ongoing session, as it struggles to stay above $110,000. Analysts have warned that a bear market could be due in October if four-year price cycles are still valid.
Bitcoin Dominance Falls To 57%
Macroeconomic conditions have boosted altcoins as Bitcoin (BTC) stumbled. According to a report by Binance Research, Bitcoin dominance has dropped to 57%, while Ethereum’s has risen to 14.2%. This suggests a broader rotation towards altcoins, likely due to the anticipation of interest rate cuts in September. Markets view rate cuts as bullish for Bitcoin. However, Binance Research argued that historical data does not support that view, stating that the correlation between Bitcoin’s price and interest rate expectations is low and highly volatile.
Binance Research believes the relationship between Bitcoin prices and interest rates is complex. Rate cuts are already priced in; the driver for prices is how market expectations for rate cuts evolve.
Bitcoin (BTC) To Beat “Red September” Yet Again
Bitcoin (BTC) has broken a three-year streak of negative summer returns. However, it is entering its worst month, often called “red September.” September has delivered the lowest monthly returns for Bitcoin, averaging 3.77% across 12 years from 2013. The record has also seen six consecutive years of losses from 2017 to 2022. However, Bitcoin snapped the losing streak in 2023, and the flagship cryptocurrency has posted gains in September for two consecutive years. BTC closed September 2024 with a gain of over 7%.
September is also the weakest month for the S&P 500, with investors adopting a risk-off stance and rebalancing their portfolios heading into Q4.
Spot Bitcoin ETFs Register $333 Million In Inflows
Spot Bitcoin ETFs started September with $333 million in inflows as investors poured capital into Bitcoin funds. On the other hand, Ethereum ETFs registered substantial outflows after another day of redemptions. Bitcoin inflows were spread across investment products, with Fidelity’s FBTC registering $132.69 million in inflows. BlackRock’s IBIT and Ark 21Shares registered $72 million and $71 million, respectively.
Bitwise’s BITB registered $39 million in inflows, while Grayscale’s Bitcoin Mini Trust registered $9.32 million and VanECK’s HODL saw $4.69 million in inflows.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has registered a substantial decline during the ongoing session, down 1.48%, trading around $110,087. The flagship cryptocurrency started the week positively, rising 0.92% on Monday and 1.84% on Tuesday to cross $111,000 and settle at $111,247. Buyers retained control on Wednesday as the price crossed $112,000, reaching an intraday high of $112,600 before settling at $111,796.
Analysts believe BTC could be entering a bear market as it goes through its latest correction. A bear market could be a possibility if the four-year cycle theory is still valid. Some predictions state that such a scenario could trigger a drop to $50,000. Joao Wedson, founder and CEO of crypto analytics platform Alphractal, stated,
“Of course, it would be reckless to assume that Bitcoin has only a little over one month left in this cycle based solely on this chart. Still, I can’t help but think — this could be just enough time for BTC to dip toward the $100K range before rocketing past $140K within the same period. Who would dare to doubt that scenario?”
However, Wedson noted that the current cycle is different from previous ones due to the presence of major institutional investors and BTC’s recognition as a major asset class.
“The real question is whether this fractal will remain reliable in the face of heavy speculation around ETFs and growing institutional demand.”
A US bear market could mark the end of Bitcoin’s bull cycle if it coincides with the flagship cryptocurrency’s bear market schedule. Wedson added,
“Personally, I’m eager to see whether the new wave of crypto enthusiasts is right in claiming the 4-year cycle is over and Bitcoin will now rise endlessly — or if 2025 marks the final breath before a sharp correction, with prices possibly sinking below $50K in the 2026 bear market.”
BTC registered a sharp drop on Sunday (August 24), falling to an intraday low of $110,635 before settling at $113,478. Bearish sentiment intensified on Monday as the price fell nearly 3% and settled at $110,127. BTC faced volatility on Tuesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose 1.51% to $111,788. BTC was back in the red on Wednesday, dropping 0.48% and settling at $111,253. It recovered on Thursday, rising 1.19% to reach an intraday high of $113,480 before settling at $112,574. Bearish sentiment returned on Friday as BTC fell nearly 4%, losing the crucial $110,000 level and settling at $108,378.
Source: TradingView
Price action was mixed over the weekend as BTC rose 0.41% on Saturday before dropping 0.53% on Sunday to settle at $108,247. The flagship cryptocurrency started the current week in positive territory, rising 0.92% to reclaim $109,000 and settle at $109,240. Bullish sentiment intensified on Tuesday as the price rose nearly 2% to cross $111,000 and settle at $111,247. BTC continued pushing higher on Wednesday, rising 0.46% to $111,756. Bearish sentiment has intensified during the ongoing session, with the price down over 2%, trading around $109,380.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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