Bitcoin traders are witnessing an intriguing start to the week, with BTC showing resilience amid recent volatility. According to Skew Δ, a prominent market analyst, the cryptocurrency has experienced an early week bounce, partially recovering from Friday's downside pressure. This movement aligns with broader market sentiment where dip buying remains dominant, as investors capitalize on perceived undervaluations. The defense of the $110,000 level has been particularly noteworthy, serving as a strong support zone that has absorbed selling pressure effectively. Traders should monitor this level closely, as it could dictate short-term price action in the coming days.

Analyzing BTC's Support at $110K and Market Dynamics

In detailed trading terms, the absorption of sellers at $110,000 is evident through declining Spot Cumulative Volume Delta (CVD) contrasted against increasing limit bid liquidity. This indicates that limit buyers have been instrumental in driving the rebound from the lows seen between Friday and Saturday. Such metrics highlight a market where buyers are stepping in aggressively, preventing further downside. For those engaged in BTC trading, this setup suggests potential buying opportunities on dips, especially if volume continues to support upward momentum. Open Interest (OI) and CVD in perpetual contracts are also rising alongside price, signaling eagerness among traders to position for upside strength. These on-chain and derivative metrics provide concrete evidence of sustained interest, with trading volumes likely to increase if BTC maintains above key supports.

Pivotal Resistance Levels: $112K to $113K in Focus

Looking ahead, the $112,000 to $113,000 range emerges as a pivotal resistance zone for BTC. Breaking through this area could open doors to higher targets, potentially testing previous all-time highs or even pushing toward $120,000 in optimistic scenarios. However, failure to surpass this resistance might lead to retests of lower supports, including the defended $110,000 level. Traders should consider multiple trading pairs, such as BTC/USDT on major exchanges, where liquidity is high and price movements are more predictable. Incorporating indicators like Relative Strength Index (RSI) or Moving Averages could help identify overbought or oversold conditions, enhancing decision-making for entries and exits. Institutional flows, often tracked through ETF inflows or whale activity, may further influence this dynamic, as large players continue to accumulate during dips.

The overall market context underscores a 'dip buying mode' that has characterized BTC's behavior in recent months. This sentiment is bolstered by macroeconomic factors, including potential interest rate adjustments and global adoption trends, which could amplify volatility. For stock market correlations, BTC often moves in tandem with tech-heavy indices like the Nasdaq, where AI-driven innovations boost investor confidence. Trading opportunities abound for those eyeing long positions on confirmed breakouts or hedging with options to mitigate risks. As of the analysis shared on September 8, 2025, these levels remain critical, with any shifts in trading volume or open interest providing early signals. Savvy traders might also look at on-chain metrics, such as active addresses or transaction volumes, to gauge underlying strength. In summary, while the early week recovery is promising, vigilance around $112K-$113K will be key to navigating potential upside or reversals, offering actionable insights for both short-term scalpers and long-term holders.

Expanding on trading strategies, consider the implications for cross-market plays. If BTC breaks resistance, correlated assets like ETH or altcoins could see sympathetic rallies, creating diversified portfolio opportunities. Conversely, downside risks might prompt shifts toward stablecoins or defensive stocks. Market indicators, including the Fear and Greed Index, currently reflect optimism amid the bounce, but external events like regulatory news could sway sentiment. For SEO-optimized trading analysis, focusing on BTC price predictions, support and resistance levels, and volume trends helps in identifying high-probability setups. Remember, always use stop-loss orders to manage risks, especially in volatile sessions. This detailed breakdown, drawing from verified analyst insights, equips traders with the tools needed to make informed decisions in the evolving crypto landscape.