Bitcoin Market Sentiment Turns Bullish as Price Remains Above $110,000

As August nears its conclusion, bitcoin enthusiasts may be looking forward to the end of a relatively modest downturn, with the cryptocurrency's value dipping by approximately 4% for the month and 12% from its all-time peak of $124,500. Currently, bitcoin is trading at around $110,580, showing a minimal increase of less than 0.5% over the past 24 hours, while ether has seen a 3.4% rise. The broader market, as measured by the CoinDesk 20 index, has experienced a 2.7% increase over the same period. A negative close to August would mark the end of four consecutive months of growth, the longest streak since March of the previous year. However, August has performed better than the past three years, and September is expected to bring an increase in trading activity as the holiday season comes to a close. On-chain data reveals that bitcoin traders have utilized the Short-Term Holder Realized Price, currently at $108,800, as a support level. This metric tracks the average acquisition price of coins moved on-chain over the past 155 days, excluding exchange reserves. In bull markets, the STH-RP often serves as a crucial support level. The Short-Term Holder Spent Output Profit Ratio, which measures profits or losses on coins younger than 155 days, indicates that short-term investors are currently selling at a loss. Historically, this behavior tends to occur near local market bottoms, but capitulation has yet to be observed. The options market points to a 'max pain' level at $116,000, suggesting potential upside relief. Beyond the crypto market, U.S. trade tensions have escalated with the imposition of 50% tariffs on India, doubling previous duties after negotiations broke down. This move, aimed at curbing India's purchases of Russian oil, highlights the strained relationship between President Donald Trump and Indian Prime Minister Narendra Modi. Analysts warn of potential export declines, job losses, and a possible 1% drag on GDP growth. For bitcoin traders, the key range to watch is between $113,500 and $117,200, where the CME futures gap remains open. Historically, such gaps tend to be filled, making this zone one to monitor closely.