The bulls are still in control as the price of Bitcoin surpasses 112,000 dollars.

The price of Bitcoin reached 112,500 USD after the Wall Street market opened on Wednesday, as investors gradually shifted to a more optimistic sentiment about price movements.

BTC price chart | Source: Bitcoin Magazine## BTC price punishes short positions with a recovery to 112,000 USD

Data from TradingView shows that BTC/USD is attempting to reclaim important support levels. Among them, the level of 112,000 USD has formed the bottom of a large sell liquidity area on the exchange's order books.

According to information from CoinGlass, the price has taken a part of this liquidity during the day, with the remainder extending to 114,000 USD.

BTC liquidation heat map | Source: CoinGlassTrader renowned CrypNuevo commented on the important support battles currently taking place: "This seems like an effort to reclaim Support 1, which will lead to a move back within the range," part of the post on X explained.

CrypNuevo also notes that there are only two weeks left until a potential bullish catalyst for risky assets — a rate cut by the Federal Reserve (Fed) on September 17.

This post describes the local bottoms of the week at 107.270 USD as a "false move," while trader BitBull pointed out a classic rebound at the support level.

One-day chart of BTC/USDT | Source: CrypNuevo/X "The $BTC has perfectly recovered from the support range of the bull market," he told his followers on X, referring to a channel formed by two moving averages.

"This shows that the bulls are still in control."

As Bitcoin Magazine reported, many market participants still hold a negative outlook across multiple time frames, predicting the possibility of a retracement to the 100,000 USD level as early as this week.

The one-week chart of BTC/USDT with the bullish market support channel | Source: BitBull/X## Optimistic outlook for Bitcoin as gold surpasses record highs

In terms of macro volatility, trading company QCP Capital notes that the odds are leaning towards Bitcoin in the future. "Two rate cuts this year seem reasonable, but attention needs to be paid to breakeven levels, as new tax levels could push expectations higher," the company summarized in its latest market update "Asia Color."

"With the uncertainty of prolonged policies, a weaker US dollar is likely to occur as long as global growth remains steady. Gold and BTC remain simple hedges in this context."

The ability of the Fed to change the target interest rate at the FOMC meeting in September | Source: CME GroupData from CME Group's FedWatch Tool confirms that market expectations for a rate cut in September have now exceeded 95%. Gold reached a new record high on Wednesday, hitting 3,567 USD per ounce.

One-day chart of XAU/USD. Source: TradingView

Mr. Teacher