Bitcoin bulls buy the dip — can BTC secure a daily close above $112K?

Bitcoin rallied briefly above $112,000 before sellers pushed the market lower, leaving traders to ask whether bulls can reclaim that level and avoid a fresh move to new lows. Markets were subdued as participants awaited a key U.S. jobs report due Friday, but on-chain and spot-market data indicate buyers stepped in during the dip.

Key takeaways:

• Buyers are accumulating on dips across spot markets, including both retail and larger accounts.
• Reclaiming and holding the $112,000 area is viewed by traders as essential to prevent further downside.

Earlier in the week, Bitcoin climbed to about $112,600 but lost that gain during the Asian trading session. The pullback extended into the following day, with the price briefly trading near $109,329 as sellers regained control. The weakness in risk assets coincided with disappointing ADP private payrolls data, which reported roughly 54,000 jobs added in August versus an expected 75,000. citeturn0view0

Attention turned to the more consequential U.S. employment report scheduled for Friday, which market participants saw as the clearest signal of the labor market’s strength. Midweek labor figures noted an unusual snapshot in which the count of unemployed people reached about 7.24 million while the number of people with jobs was reported at roughly 7.18 million — a dynamic that traders said could influence Fed policy expectations. citeturn0view0

For Bitcoin traders, signs of a cooling labor market are typically read as positive for risk assets because they increase the likelihood of sooner-than-expected Fed easing. The CME Group’s FedWatch tool showed a high probability that the Federal Reserve would cut its benchmark rate by 25 basis points at the September meeting, a view that many market participants hope would support a BTC rebound. citeturn0view0

Order-flow and market-structure data from spot venues also suggested accumulation: both retail and institutional-sized traders were adding positions. Short-term liquidation maps placed Bitcoin inside a relatively tight band between roughly $109,000 and $111,200, with evidence of profit-taking by short-term holders as prices approached the top of that range. Traders emphasized that a sustained daily close above $112,000 would be an important technical development for bulls. citeturn0view0

This article is not investment advice. Every trading and investment decision carries risk, and readers should conduct their own research before taking action.