Current Bitcoin Price Action
Bitcoin (BTC) has started the second week of September facing significant resistance, with traders maintaining downside targets. The Bitcoin price has been coiling below $112,000 over the weekend, but fears of a 10% correction or worse are mounting. With CPI week here again, markets are wondering how large next week’s Federal Reserve interest-rate cut will be.
Key Resistance Levels
$112,000 remains a key target among traders hoping for a resistance/support flip. Analyzing exchange order-book liquidity, popular trader CrypNuevo flagged $106,700 as an important level to the downside. This level is crucial in determining the future price action of Bitcoin.
Potential Correction
Attention is now focused on how low BTC/USD could drop in a potential capitulation event. $100,000 is a favorite line in the sand, with Fibonacci retracement levels now confluent with a retest of that level as a “worst case scenario.” Meanwhile, Telegram analytics channel Coin Signals has contributed another, more concerning bottom target of 30% versus Bitcoin’s latest all-time highs. Such a scenario would put BTC/USD at around $87,000.
CPI Week and Federal Reserve Interest-Rate Cut
Some classic US economic data prints are due this week, including the Producer Price Index (PPI) and Consumer Price Index (CPI). Inflation is on the rise, while signs of labor-market weakness are increasing — a headache for the Federal Reserve, but one to which markets believe they already know the response. Data from CME Group’s FedWatch Tool shows that the odds of the Fed cutting interest rates at its September meeting next week are fully priced in.
Criticism of Federal Reserve Policy
The Federal Reserve has kept rates steady throughout 2025, while other central banks have cut rates. This has led to growing criticism of Fed policy, with some arguing that it is out of touch with the rest of the world. The European Central Bank and the Bank of England have cut rates 4 and 3 times this year, respectively. Meanwhile, the Bank of Canada has cut rates 2 times, as has the Swiss National Bank, which became the first major central bank to bring rates back to 0%.
Institutional Rotation from Ether to Bitcoin
Buzz around an institutional capital “rotation” from Bitcoin into Ether (ETH) appears to be cooling. Last week, inflows to BTC-denominated exchange-traded products (ETPs) ended in positive territory, sharply contrasting with ETH equivalents. Figures show Bitcoin ETPs added $444 million in the five days through Sept. 5, while Ether ETPs saw net outflows of over $900 million.
Bitcoin Whale Activity
The largest Bitcoin investors are reducing their BTC exposure, with recent market distribution rivaling the last bear market in 2022. Whales have fallen by more than 100,000 BTC in the last thirty days, signaling intense risk aversion among large investors. This trend is giving on-chain analytics platform CryptoQuant cause for concern.
Binance Bitcoin Taker Buy/Sell Ratio
The Bitcoin futures market on the largest global exchange, Binance, is under scrutiny as liquidity tails off across perp markets. New research from CryptoQuant flags a classic signal corresponding to bull market corrections. The Taker Buy/Sell Ratio is currently making lower lows while the price itself expands. This behavior was characteristic of the market peak during the 2021 bull run.
Conclusion
In conclusion, the current Bitcoin price action is facing significant resistance, with traders maintaining downside targets. The potential correction, key resistance levels, and CPI week are all factors that will contribute to the future price action of Bitcoin. Meanwhile, the institutional rotation from Ether to Bitcoin and the activity of Bitcoin whales are also crucial in determining the direction of the market. As the largest global exchange, Binance, faces scrutiny, it is essential to keep a close eye on the Bitcoin Taker Buy/Sell Ratio and other market indicators to make informed decisions.
