$BTC shows confident growth to liquidate short positions, while analysts highly rate its status as a macro hedge asset ahead of the anticipated rate cut by the Fed.
Key points:
Bitcoin returns to the $112,000 mark as bulls retest key resistance.
The price dynamics of BTC maintains the 'bull market support channel' in the form of a classic dip to the support level.
Gold has reached new record highs amid positive reviews of Bitcoin as a macroeconomic tool.
Bitcoin reached a level of $112,500 after the Wall Street trading opened on Wednesday, as traders gradually began to show bullish sentiment regarding the price of BTC.
The price of BTC punishes 'shorts' by recovering to $112,000.
Data from TradingView showed that the BTC/USD pair is trying to recover key support levels.
This included an amount of $112,000, which formed the lower boundary of a large liquidity demand area in the exchange order books.
Data from CoinGlass showed that on that day the price absorbed part of this liquidity, and the remaining amount reached $114,000.
Only two weeks remain until the potential bullish catalyst for risk assets — a decrease in the interest rate by the Federal Reserve on September 17. Local lows this week at $107,270 were a 'false move'.
A classic rebound from the support level is noted.
BTC perfectly bounced off the bull market support level, from the channel formed by two moving averages.
'This is a sign that bulls still control the situation.'
Despite this, many market participants maintain 'bearish' sentiments across different timeframes and expect a retest of the $100,000 mark.
The price of Bitcoin has risen, while gold has reached record highs.
Regarding macroeconomic volatility, according to trading company QCP Capital, Bitcoin's chances will increase in the future.
'Two cuts this year seem reasonable, but watch the breakeven level, as new rates could raise expectations,' says the latest market review 'Asia Color'.
Data from the FedWatch tool by CME Group confirms that market expectations for a rate cut in September are now over 95%.
On Wednesday, gold reached new historical highs, rising to $3,567 per ounce.
