Bitcoin’s Wild Ride: Will $112K Save the Day or Doom the HODLers? 🎢

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Key takeaways:

  • Bitcoin has tumbled 14% from its $124,500 all-time high, leaving fewer coins in profit and signaling that even crypto whales might be running out of coffee ☕ to stay euphoric.

  • The magical $112,000-$116,000 range is now Bitcoin’s VIP lounge-if it can’t get in, the party might just fizzle out. 🎉➡️🪦

Bitcoin (BTC) decided to take a little breather recently, dropping 14% from its jaw-dropping $124,500 peak to a humble $107,400-a seven-week low. This correction wasn’t just a casual dip; it was more like a full-blown market tantrum, with everyone suddenly realizing they’d been spending imaginary money. According to new analysis, the “euphoric phase” has officially cooled faster than your morning oatmeal. 🥶

Bitcoin’s Drop to $107,000: The Exhaustion Edition 💤

Back in mid-August, Bitcoin hit new highs, and for a brief, shining moment, 100% of its supply was in profit. It was like everyone at the crypto casino had won the jackpot simultaneously. But as Glassnode pointed out, sustaining such euphoria requires an endless stream of fresh cash-something the market apparently forgot to order. 🤦‍♂️

“This behaviour,” Glassnode explained in their latest report, “is often captured by the 0.95 quantile cost basis-the threshold above which 95% of supply is in profit.” Sounds fancy, right? Well, it basically means Bitcoin partied too hard for 3.5 months, and now it’s paying the price (literally). On August 19, BTC fell below this magical band as demand finally waved the white flag of exhaustion. 🏳️

Currently, 90% of Bitcoin supply is still in profit, but that’s teetering precariously between the 0.85 and 0.95 quantile cost basis-or, for us mere mortals, the $104,100-$114,300 range. Historically, this zone acts like a financial purgatory, where prices wobble sideways until someone figures out what to do next. Break below $104,100, and we’re replaying the post-all-time-high blues. Climb above $114,300, and the bulls might regain control. 🐂

Meanwhile, short-term holders went from 90% profit to just 42%-a textbook example of the market taking a cold shower. Glassnode added, “Such sharp reversals typically provoke fear-driven selling from top buyers, which is then often followed by exhaustion of the very same sellers.” In other words, everyone panics, sells, regrets it, and then does it all over again. Classic human behavior. 🌀

But wait! Bitcoin clawed its way back to $112,000, putting over 60% of short-term holder supply back in profit. However, Glassnode warns this recovery is as fragile as a house of cards in a wind tunnel. Only a sustained push above $114K-$116K will convince the skeptics to jump back in. Until then, it’s anyone’s guess. 🔮

$112,000: Bitcoin’s Everest 🧗‍♂️

Bitcoin’s recent relief rally kept bumping into $112,000 like a clumsy guest at a party who can’t find the bathroom. The bears are guarding this level like it’s Fort Knox, making life difficult for the bulls. The $111,700-$115,500 range is particularly tricky, sitting snugly on both the 100-day and 50-day simple moving averages (SMA). Bulls need to flip this area into support pronto-or risk another nosedive. 📉

Trader Daan Crypto Trades summed it up nicely on X: “A move back above $112K and holding there would be good in the short term.” Translation: Let’s not screw this up, folks. 🙏

And according to CryptoMoon, the 20-day exponential moving average (EMA) at $112,438 is yet another hurdle. Overcome it, and Bitcoin might attempt another run at those all-time highs. Fail, and well… let’s just say nobody wants to see another crypto winter. ❄️

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2025-09-04 14:58