Bitcoin faces key $109,500 support test after temporary recovery, analyst says
- Bridget Hubbard
- September 24, 2025
- Analytics
- 0 Comments
Market Correction Tests Bitcoin’s Resilience
Bitcoin and the broader cryptocurrency market opened the new week with significant declines, shaking investor confidence after recent gains. BTC found some stability around $112,000 while Ethereum hovered near $4,200, but according to CryptoQuant analyst Axel Adler, this apparent recovery might be misleading.
Adler suggests the current price action represents more of a temporary bounce than a genuine trend reversal. The market structure has apparently shifted, with technical indicators pointing toward continued downward pressure. The Composite Index, a key technical metric Adler monitors, has dropped below the -0.4 threshold, which historically signals bearish dominance in the market.
Technical Indicators Point to Correction Phase
What’s interesting here is how Adler interprets the current market behavior. He sees these bounces not as the start of a new uptrend but rather as “relief rallies” within a broader corrective phase. This distinction matters because it suggests we might see more volatility before any sustained recovery takes hold.
I think many traders are watching these technical levels closely. The Composite Index falling below that -0.4 mark typically indicates that selling pressure outweighs buying momentum. When this happens, even positive price movements need to be viewed with some caution.
Critical Support and Resistance Levels
The $109,500 level emerges as crucial support for Bitcoin according to Adler’s analysis. If BTC can maintain above this price point and the Composite Index manages to break back above zero, we could see conditions ripe for a renewed uptrend. The analyst suggests this scenario might then target the $117,700 resistance level.
But here’s the thing about technical analysis—it’s not always straightforward. Markets can behave unexpectedly, and what looks like a clear pattern sometimes breaks down. Adler’s framework provides a useful roadmap, but traders should probably consider multiple factors beyond just these technical indicators.
Market Psychology and Next Moves
What strikes me about this analysis is how it captures the psychological aspect of market movements. Calling current bounces “cathartic rallies” suggests they serve to release pent-up selling pressure rather than signal genuine bullish conviction. This perspective might help explain why recoveries have felt somewhat fragile recently.
The market seems to be in a wait-and-see mode, with many participants looking for clearer signals before committing to stronger positions. Adler’s assessment that we’re in “corrective mode” aligns with the cautious sentiment I’ve observed across trading communities.
Of course, cryptocurrency markets are notoriously unpredictable. While technical analysis provides valuable insights, fundamental developments—regulatory news, institutional adoption, macroeconomic factors—can quickly override these patterns. The relationship between technical indicators and actual price action isn’t always linear.
As always with market analysis, this represents one perspective among many. Different analysts might interpret the same data points differently, and market conditions can change rapidly. The key levels Adler identifies—$109,500 support and $117,700 resistance—give traders concrete price points to watch, but the broader market context will likely determine Bitcoin’s next significant move.
