To The Moon

Bitcoin's recent price movement, dipping below $113,000 and subsequently hovering around that mark, has created a critical moment for the market. This pullback from its all-time high of over $124,000 is a result of a combination of technical factors, macroeconomic headwinds, and shifts in market sentiment.

Key Factors and Market Data

Technical Support: The $110,000 to $112,000 range is widely considered a crucial support zone. Bitcoin's ability to hold above this level after a brief dip is a positive sign for short-term technical health. Analysts note that this range has consistently attracted buyers and acts as a strong foundation. A decisive break below this could signal a deeper retracement, potentially towards the psychological $100,000 level.

Macroeconomic Headwinds: The recent decline is partly attributed to a "risk-off" environment in the broader financial markets. Concerns over rising inflation and a sell-off in correlated assets like overvalued technology stocks have put downward pressure on Bitcoin. This shows that while Bitcoin is often seen as a hedge, its short-term price action remains influenced by global economic sentiment.

According to an article by Ark Invest, Bitcoin is the first digital, independent, global, rules-based monetary system in history. By design, its decentralization should mitigate the systemic risks associated with traditional financial systems that rely on centralized intermediaries and human decision makers to dictate and enforce rules. Capital “B” Bitcoin is the financial network that facilitates the transfer and custody of lowercase “b” bitcoin, a scarce digital monetary asset.

Profit-Taking and Liquidation: After a significant rally to new all-time highs, some short-term holders and leveraged positions have been liquidated, contributing to the selling pressure. However, some analysis suggests this "liquidity sweep" has created a zone of "trapped shorts" that could provide near-term support.

We saw approximately $3.3B realized in profits on 15 Aug (Saturday) alone, the highest since July. There are four ATHs in 2025, with corrections shrinking from 30% to 8%.

Institutional and Long-Term Holder Behavior: The current rally, unlike previous ones, is being driven by strong institutional and long-term holder demand, which provides a more stable base and makes the market less prone to sharp, speculative collapses. While there have been some recent outflows from spot Bitcoin ETFs, the long-term institutional narrative remains intact. VanEck's report, for instance, maintains a bullish year-end target of $180,000 for Bitcoin.

Market Sentiment: The market sentiment, while experiencing a temporary cooling, remains overall positive. The recent dip is viewed by many as a healthy consolidation phase after a rapid ascent. The market is currently in a state of consolidation, with a tug-of-war between buyers and sellers around the $113,000 to $116,000 range.

Conclusion: Is It Time to Buy the Dip?

Based on the current analysis, the answer is complex and depends on our investment thesis.

For Long-Term Investors (HODLers): The current price level around $113,000 could be a strategic entry point to add to a long-term position, especially if you believe in Bitcoin's continued institutional adoption and its potential for future growth. The dip back to a strong support zone provides a chance to dollar-cost average into the asset.

For Short-Term Traders: The market is at a pivotal technical point. The price holding above the key support level of $112,000 is a positive sign. However, the presence of macroeconomic uncertainty and the potential for further liquidations means volatility is likely to continue. A confirmed break and sustained trading above the $116,500 resistance level could signal a resumption of the bullish trend, while a fall below $112,000 would be a negative signal.

Bitcoin Is Below 50-Day MA Level, Signal Potential More Downside Before Bullish Reversal

If we looked at how Bitcoin have been trading in the past, we can see that the 50-day MA level is the key, once Bitcoin start trading near the 50-day period and able to hold on without dipping below, we could see a bullish reversal, but now we are seeing Bitcoin slightly below 50-day MA.

I think we might be seeing a $114k level, and Bitcoin continue to hold a consolidation around that value, then we might see a nice bullish reversal upside.

If Rate Cut Happen, Bitcoin Become More Attractive?

A cut in interest rates by a central bank, such as the Federal Reserve, can make riskier assets like Bitcoin more attractive to investors for several reasons:

Increased Liquidity: Lower interest rates reduce the cost of borrowing for businesses and consumers, injecting more money into the financial system. This increased liquidity can flow into riskier assets, as investors seek higher returns than what traditional, lower-yielding investments like bonds or savings accounts are offering.

Reduced Opportunity Cost: When interest rates are high, "safer" investments like government bonds offer attractive yields, which can pull money away from speculative assets. A rate cut reduces the appeal of these safe havens, increasing the opportunity cost of not investing in assets with higher growth potential.

Weaker Fiat Currency: Interest rate cuts can lead to a weaker domestic currency relative to others. As a result, investors, particularly those from other countries, may look for alternative stores of value. Bitcoin's decentralized nature and fixed supply make it an attractive option, sometimes referred to as "digital gold," to hedge against potential currency devaluation.

Risk-On Sentiment: Lower rates generally signal a more accommodative monetary policy, which can boost market confidence and lead to a "risk-on" environment. In this scenario, investors are more willing to take on risk in search of higher returns, which can drive capital into cryptocurrencies.

Summary

The dip appears to be a consolidation phase rather than a full-blown reversal of the bull market. The market is testing a critical support level. While the long-term outlook remains bullish for many, the short-term path is less certain. Any decision to "buy the dip" should be accompanied by a clear understanding of your own risk tolerance and investment horizon.

So as investors, you can actually look at some of the performing Bitcoin ETFs, these are four of them which have showed a considerable increase of more than 1% while Bitcoin trading above around $113,000 and hitting $114,000 briefly.

$VanEck Bitcoin ETF(HODL)$ $iShares Bitcoin Trust ETF(IBIT)$ $WISDOMTREE PHYSICAL BITCOIN(BTCW.UK)$ $ARK 21Shares Bitcoin ETF(ARKB)$

Appreciate if you could share your thoughts in the comment section whether you think Bitcoin would continue to show some buy point as it is trading around $113,000, do you want to wait for a dip to below $113,000 before taking action?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire @MillionaireTiger appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.