Bitcoin Faces $108K Ping Pong Risk

Bitcoin closed the week above $112,000, surprising traders after testing levels under $109,000. Bitcoin’s late rebound set up a battle between bulls and bears as the monthly and quarterly closes approached. Bitcoin traders warned that the price could fall back toward $108,000 in a ping-pong style move before regaining strength. Bitcoin price gains of around 3% for September and 4.4% for Q3 reflect average historical performance. Analysts noted that Bitcoin has typically shown little volatility in Q3, but Bitcoin’s Q4 outlook could be far more exciting.

Bitcoin markets experienced $350 million in liquidations within 24 hours, with $260 million in shorts. Bitcoin liquidity shifted above $112,000, with large orders placed near $113,000. Bitcoin analysts explained that liquidity acts like a magnet, pulling prices both higher and lower. Traders warned that Bitcoin could revisit $106,900 to $108,000, while others said a strong daily close above $113,500 or $118,000 would confirm bullish strength.

Bitcoin futures showed a new CME gap between $110,900 and $111,300, another factor drawing traders’ attention. Bitcoin has historically filled such gaps, and some expect a short-term dip before a larger rally. Meanwhile, US economic data and Federal Reserve comments added pressure. Bitcoin investors noted that interest-rate policy shifts affect liquidity and risk assets.

At the same time, gold reached $3,800 per ounce, outperforming Bitcoin. Analysts said Bitcoin has lagged behind gold because gold reacts more directly to monetary policy while Bitcoin reflects global growth expectations. Still, many believe Bitcoin will follow gold’s rally after a delay.

Bitcoin on-chain analysis revealed that short-term holders sold coins at a loss during the dip, while long-term holders held firm. Historically, such behavior signals that Bitcoin corrections are near completion. Analysts suggested that Bitcoin could be approaching a price bottom, setting the stage for a recovery.