Key Takeaways
Amid Bitcoin facing macro uncertainty, on-chain data suggested that the asset could dip for the final time before taking a stab at another new ATH. But will it defend $110K?
Bitcoin’s [BTC] pullback has hit about 7% from the recent record high above $123K, but the cool-off could be close to a final leg before a strong recovery, according to market analysts.
So far, the retracement has reached the $110K–$112K zone (highlighted in cyan), which previously acted as a local peak. To confirm a potential rebound, this area now needs to hold as a support zone on the charts.
Source: BTC/USDT, TradingView
However, President Donald Trump’s tariffs are set to go into effect this week.
On top of that, there are additional sectoral tariffs from next week, which could further trigger market swings. But the short-term weakness could be short-lived before rallying higher, per pundits.
BTC inches closer to a ‘buy the dip’ zone
According to Glassnode founders, the asset could dip for the next five days and bounce back around the 10th of August, citing correlation with the global money supply (M2).
“Based on the global M2, bears have another 5 days to push Bitcoin price down one more time to $111.7K, then train leaves the station to new ATH”
Their price target aligned with the highlighted demand zone on the charts. Additionally, on-chain analyst James Check noted that we may be close to a capitulation and a perfect ‘buy the dip’ zone before a bounce back.
“We’re right on the cusp of flipping from profit taking (🟩), to loss taking (🟥) – which is historically a ‘buy-the-dip’ signal in bulls.”
Source: X
The projection was based on the Short Term Holder SOPR (Spent Output Profit Ratio), a key profitability indicator and tracker of local bottoms and peaks.
At press time, the indicator had dropped to a neutral level. This meant that STH realized profits spiked) and was close to slipping into the red zone.
On the macro front, analyst and crypto investor Dennis Liu projected that the macro headwinds could ease ahead of highly expected Fed rate cuts in September.
In the short term, however, it remains uncertain whether BTC will stay above $110K before the potential leg higher.
Per CoinGlass liquidation heatmap data, a huge liquidity and price magnetic zone was at $108K-$111.9K and $120K
Source: CoinGlass
The chart reinforced a potential price floor around $108K-$110K, with an immediate upside target at $120K in the near term. Whether the support will hold remains to be seen.