The flagship cryptocurrency has repeatedly attempted a comeback, but with mixed success. Bitcoin is currently on a recovery path, slightly edging out Ethereum, which is also gaining momentum.

Bitcoin began its rebound with a climb to $111,200, crossing above the 100-hour moving average. However, BTC could enter a new downward phase if it fails to break above the $112,500 resistance level, experts warn.

On Friday, September 5, Bitcoin was trading at $112,930, having started the day with sideways movement. By now, BTC has broken above resistance levels at $110,000 and $110,500, surpassing the 61.8% Fibonacci retracement level of the key decline from the $113,457 high to the $107,352 low.

Bitcoin's losses for the week stood at about 1.5%. Some tension in the crypto market is attributed to investor caution ahead of the US nonfarm payrolls. BTC remains more sensitive to macroeconomic news than most other cryptocurrencies.

Currently, Bitcoin is trading above $111,000 and the 100-hour simple moving average. The nearest resistance in the asset's upward trend is around $112,500. However, false signals may emerge within the current consolidation range of $108,000 to $113,000, and a breakout could confirm a stronger bullish trend.

The next potential resistance level is $113,450, and a close above it could lead to further gains. In that case, the flagship cryptocurrency may test resistance at $114,500, with the key target being $115,500.

Major miners ramp up BTC production amid record mining difficulty

Despite the highest mining difficulty in the past 12 months, mining companies Riot Platforms and CleanSpark have significantly increased their Bitcoin output.

Both firms also boosted their hashrate. Riot Platforms reached an average hashrate of 31.4 EH/s, up from 14.5 EH/s in 2024—a growth of 116.6%. CleanSpark increased its power from 21.3 EH/s to 43.3 EH/s, a rise of 103.3%. This faster hashrate growth compared to difficulty helps explain their strong recent performance.

Bitcoin mining difficulty hits new highs

These mining successes are even more notable against the backdrop of soaring mining difficulty. Over the past 12 months, the metric has risen 44.9%, from 89.5 trillion hashes in August 2024 to 129.7 trillion hashes in 2025.

Bitcoin mining difficulty measures how hard it is for miners to find a new block and earn the mining reward. As it increases, companies must upgrade hardware, expand data centers, and adjust strategies.

Could BTC pull back again?

Amid these challenges, Bitcoin must overcome several hurdles to stay afloat and avoid another drop. Immediate support lies near $111,500, with the next key level around $110,000. Further losses could push BTC down to $109,250, but this scenario is considered unlikely for now.

Ethereum could reach $5,500

The second-largest cryptocurrency, Ethereum (ETH), could climb to $5,500, according to analysts. This is supported by liquidity constraints and bullish signals from the futures market.

In August, Ethereum surged to $4,950, hitting a historic high amid a broader market rally and inflows into spot ETFs based on ETH. However, this rally hides some caveats: exchange wallet data shows both short-term investor caution and long-term confidence in ETH growth.

During the last month of summer, Ethereum reserves on Binance rose sharply, signaling profit-taking. At the same time, liquid ETH supply also grew, indicating that some holders are returning to the market. However, chasing high staking yields carries risks, warns SharpLink Gaming, the second-largest public ETH holder by assets.

Normally, sharp crypto price drops trigger mass liquidations. But the current situation is different: the resilience of the digital asset market suggests traders are not rushing to close positions. They either expect a rebound or are not afraid of further downside.

Overall, the crypto market remains positive and is looking toward the future with cautious optimism.