- Bitcoin trades under the 9-EMA and 50-SMA, signaling fading momentum and limited upside until trend strength is restored.
- The 112k–114k zone acts as a key demand area, with breakdown risks pointing to the 109k–107k liquidity pocket.
- Analysts expect sideways consolidation into September, with volume tapering before the market reveals its next directional move.
Bitcoin remains consolidating within a pattern with no breakthrough beyond the $120k level achieved earlier in the month. The pace has slackened significantly, with traders seeing a long-term sideways movement and perhaps a breakout in September. Analysts cite declining volume and opposition by moving averages as indicators of eroding strength in the short run.
Momentum fades beneath moving averages
Alpha Crypto Signal noted on X that Bitcoin has already started its decline and momentum is fading as September approaches. The analyst explained that the price currently sits below the 9-EMA at 115.7k and the 50-SMA at 116.5k. These moving averages now act as resistance, capping intraday bounces and limiting upward continuation.
Recent price action suggests a distribution top formed in August, with lower highs beneath the 120.4k supply shelf. Multiple rejection wicks and heavy sell volume confirmed this zone as an area of resistance. The inability to regain ground above both moving averages is an indication of the weakness of the current rebound.
As of the time of writing, the current price of Bitcoin is $114,628, a drop of 0.72 percent over the past 24 hours. In the last 7 days, the coin has lost 3.14 percent, indicating even more inertia in the coin.
Sideways grind before September move
The analyst emphasized that this phase will not result in an immediate crash but rather a drawn-out sideways grind. Bitcoin will likely fluctuate within 112k and 118k during the current season as the investment community awaits the next trend. These consolidations usually exhaust volatility and patience before setting up the market to bigger movements.
Volume continues to taper, a condition that often precedes breakout attempts. Daily candles respecting the moving average cluster from below further strengthen the bearish tilt. Until price reclaims these levels, upside potential remains capped.
Traders monitoring the range anticipate more corrective moves. Relief rallies into overhead resistance zones are treated as selling opportunities rather than trend reversals. This setup keeps bearish bias intact as the new month approaches.
Key levels to watch in coming weeks
The 120.4k level remains the invalidation point for the bearish case. A decisive close above this level, with volume support, could extend gains toward prior highs. Until then, the path of least resistance remains to the downside.
The 112k–114k demand zone is a critical area in the near term. If Bitcoin loses this level, the market could extend losses into the 109k–110k range. Further continuation lower may test the 106k–107k area, where prior support bases exist.
Alpha Crypto Signal added that preferred trading levels include fading strength near 117.5k–118.5k and again close to 120k, with stops above 120.4k. Traders awaiting confirmation can look for a break and retest of 112k–114k from below before targeting 110k and 107k.
