Bitcoin News Today: Bitcoin’s $110K Test Could Define Bullish Trend’s Survival

Bitcoin's price has retreated below the $112,000 level, sparking heightened scrutiny among traders and analysts over the $110,000 support zone. The cryptocurrency, which had reached a peak of over $124,500 in early August, has since seen a drawdown of approximately 11%. Observers are closely watching whether this level can hold to prevent a deeper correction. Swissblock, a private wealth management firm, emphasized in a post that the $110,000 level is a “make-or-break point” for Bitcoin’s trend. The firm noted that the cryptocurrency has shown resilience above $100,000 in the past, but its performance above $110,000 will determine whether the bullish trend remains intact or shifts into structural weakness [1].

Technical indicators add to the concern. The Bitcoin Taker-Buy-Sell Ratio, a gauge of market sentiment, has fallen to -0.945, indicating bearish control over the market. This metric is currently below its historical average, signaling that selling pressure has outpaced buying activity. The last time similar levels were observed was in November 2021, when Bitcoin reached $69,000 before entering a prolonged correction phase. Analyst Gaah from CryptoQuant noted that this metric underscores growing bearish sentiment and potential weaknesses in the current bullish price structure [1]. Additionally, a 13% drop in Bitcoin’s monthly average of change-adjusted transfer volume to $23.2 billion from $26.7 billion has further reinforced the bearish outlook [1].

Whale activity and institutional outflows have also contributed to the downward pressure. Data from Lookonchain shows that a single large wallet sold 22,769 BTC, valued at roughly $2.59 billion, over the past week. Meanwhile, spot Bitcoin ETFs have recorded $1.17 billion in weekly withdrawals—the largest such outflow since March 2025. These developments suggest a cautious stance by institutional investors and a shift in capital toward alternative assets. Despite these challenges, some positive signs remain, including a return of inflows into Bitcoin ETFs and a positive Coinbase Premium, which have sparked hopes of a potential rebound [2].

In parallel, Ethereum has seen a surge in institutional interest. Ethereum spot ETFs recorded $443.9 million in net inflows on August 25, nearly doubling the inflows of Bitcoin ETFs on the same day. BlackRock’s ETHA and Fidelity’s FETH led the charge, with ETHA alone attracting $314.9 million in fresh capital. This trend has pushed Ethereum ETFs to a cumulative inflow of nearly $13 billion since their launch earlier this year [4]. The ETH/BTC ratio has also shifted in favor of Ethereum, with flows into Ethereum now outpacing Bitcoin by a significant margin [3].

Bitcoin’s immediate technical outlook remains fragile. The cryptocurrency is currently trading near $110,306, with key support levels at $109,500 and $108,000. A clean break below $108,000 could expose the $100,000 psychological level, while a reversal above $112,300 could lead to a retest of $116,000. However, unless a macroeconomic catalyst emerges—such as a shift in Federal Reserve policy—Bitcoin may continue to face downward pressure as capital flows remain tilted toward Ethereum [2].

In summary, Bitcoin's performance at $110,000 will be a decisive factor in shaping its near-term trajectory. While bearish technicals and whale selling raise the risk of a deeper correction, institutional buying and ETF inflows offer a potential buffer. Traders and investors will need to closely monitor this critical support level and broader market dynamics to assess the next steps in Bitcoin’s price action.

Source:

[1] Bitcoin Traders Say BTC Price Must Hold $110K To Avoid ... (https://cointelegraph.com/news/bitcoin-traders-btc-price-make-or-break-point-110k)

[2] Bitcoin Risks Breaking $110K Support as Technicals ... (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-risks-breaking-110k-support-as-technicals-signal-further-downside)

[3] Bitcoin slips below $112K - Will $110K support hold or is ... (https://ambcrypto.com/bitcoin-slips-below-112k-will-110k-support-hold-or-is-more-pain-ahead/)

[4] ETH ETFs Haul $443.9M Crushing Bitcoin with 2x Inflows (https://finance.yahoo.com/news/eth-etfs-haul-443-9m-150015899.html)