Bitcoin (BTC) price failed to hold above $111,000 on Sept. 9, following the token’s rejection near $113,000. Recent price action for the token has been devoid of any excitement, with the token slipping back under pressure. Momentum weakened across daily charts.
The 20-day and 50-day exponential moving averages both tilted lower, highlighting fading momentum after months of steady gains. Relative strength readings hovered near neutral, signaling a lack of conviction from buyers.
Buyers failed to sustain strength at higher ranges, leaving price action vulnerable to another pullback. Against this backdrop, analysts flagged conditions that could set up a deeper correction in the near term.
Analysts Point to Short-Term Downside
Analysts quickly recognized the fragile backdrop. Their focus turned to inflation data and structural liquidity, both of which were seen as catalysts for another leg lower.
Ted, an investor, shared a post with his 201,000 X followers that focused on Bitcoin’s performance around U.S. inflation prints. His chart showed that the last three consumer price index (CPI) releases coincided with steep corrections, ranging from 9% to 14%. The pattern reinforced how sensitive Bitcoin remains to macroeconomic data, particularly at elevated valuations.
With the next CPI release due Sept. 11, traders weighed the likelihood of another sharp reaction if inflation data again surprised to the upside. The setup left little room for complacency as volatility appeared closely tied to economic headlines.
Independent analyst Doctor Profit also flagged weakness in Bitcoin’s structure. The analyst described the $115,000 to $125,000 range as his short area, noting he had already taken partial profit from that trade. Doctor Profit added that they would reload if price revisited the zone.
Doctor Profit’s chart marked the $90,000 level as both a liquidity pocket and a CME gap, suggesting a possible magnet for downside moves. The view aligned with earlier warnings about fading bullish momentum after Bitcoin failed to extend its summer rally.
Together, the signals carried a consistent message. Both analysts, drawing from different approaches, highlighted fragility for the BTC USD pair in the short term. Their outlooks converged on a similar conclusion: Bitcoin faced a correction risk that overshadowed longer-term optimism. Given Bitcoin’s recent price action, a sluggish short-term prediction does not seem very surprising.
The long-term outlook, however, is another story.
Record Cash Pile Could Aid Bitcoin
While immediate risks dominated the discussion, the record cash pile building inside money market funds could benefit risk assets like Bitcoin. Money market funds reached an all-time high this year, with the Investment Company Institute reporting holdings at $7.26 trillion.
Posts on X highlighted the surge with a chart showing the parabolic rise since 2022, as elevated yields north of 5% turned cash vehicles into the default option for investors. The buildup echoed previous cycles in 2001, 2008, and 2020, when sidelined capital preceded reallocations during shifts in Federal Reserve policy.
X-based analyst EndGame Macro argued that the coming Fed meeting could change the equation. Macro said even a 25-basis-point cut would begin eroding the yield edge, while a 50-basis-point move risked accelerating outflows. According to the analyst, cash would likely flow into Treasuries before eventually moving toward equities, credit, and other risk assets. The framework positioned Bitcoin as one potential beneficiary of this rotation, though the timing remained uncertain.
The scale of the cash pile was difficult to ignore. EndGame Macro calculated that a 10% reallocation alone would represent about $740 billion, a figure large enough to influence flows across financial markets. That perspective offered a counterweight to the bearish short-term views dominating the discussion, suggesting longer-term liquidity could provide relief if policy shifted.
For now, the scenario remained only a possibility. Cash retained its appeal as long as yields stayed elevated, and investors showed little urgency to redeploy. But the record pile underscored that while Bitcoin faced correction risks in the immediate term, the longer horizon still carried a potential rescue route.
