Bitcoin clings to the $112K–$113K support zone as repeated retests weaken structure, raising the risk of a sharp breakdown ahead.
Bearish momentum grows with BTC trading below key moving averages and rejection at $114K–$116.5K resistance intensifying selling pressure.
Whale activity, fading volume, and September’s historically poor performance are stacking up against the bulls ahead of a volatile month.
Bitcoin is dancing dangerously on thin ice as it retests a weakening support zone. With whale selloffs and September’s curse lurking, BTC traders brace for what could be a brutal breakdown ahead.
BTC Stalls Below Resistance as Bearish Pressure Mounts
As of press time, BTC/USDT is trading at $111,611, marking a 2.95% drop in the last 24 hours and a 3.20% decline over the past 7 days. The red daily candle reflects growing seller dominance as BTC struggles to hold its ground.
Bitcoin is trading below the 9-day EMA at $114,814 and the 50-day SMA at $116,546, showing clear short- and mid-term bearish pressure. The failed attempt to reclaim the $114K mark – a former support-turned-resistance – highlights a shift in structure from accumulation to potential distribution.
Market structure shows a descending pattern with lower highs and lower lows forming since early August. BTC peaked above $120K but has since been on a steady decline. The bearish crossover of the 9-day EMA beneath the 50-day SMA earlier this week adds to the downtrend confirmation.
Support Weakens Amid Whale Selloff and Seasonal Trends
The support range between $112,000 and $113,000 remains critical. On August 25, Bitcoin briefly dipped to $112,159 before recovering slightly. However, the rebound lacked strength compared to previous support bounces. Volume analysis shows rising sell pressure with a notable red bar on the latest retest.
Adding to the bearish backdrop, a dormant whale recently sold 24,000 BTC, triggering a $45 billion drop in market cap. The whale still holds over 152,000 BTC, sparking concerns of further selloffs. The timing of the move, just ahead of historically weak September performance, heightens caution.
Data shared by Wise Crypto reveals September has been the worst-performing month for Bitcoin. Over the last 13 years, BTC has closed September red nine times. The average return is -3.77%, with 2019 and 2014 posting drops of over -13% and -19%, respectively.
To flip short-term sentiment, bulls must reclaim the 9-day EMA and break decisively above $116,500.
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