Bitcoin News Today: Bitcoin's $105K Defense Ignites Battle for Bullish Survival

Bitcoin, Ethereum, and Dogecoin experienced a significant decline as crypto liquidations exceeded $900 million in a short span, marking one of the most intense drawdowns in recent months. The sharp correction came after a brief rebound fueled by the Federal Reserve's dovish remarks at the Jackson Hole Economic Symposium. Bitcoin (BTC) briefly surged to $117,300 on Friday but quickly reversed over the weekend, dropping to $110,600 by Monday. The price action was underscored by a bearish weekly engulfing candle and widespread distribution among Bitcoin holders. Data from Glassnode indicated that all major BTC wallet cohorts had transitioned into distribution mode, with the 10–100 BTC group leading the sell-off. Analyst Boris Vest highlighted that smaller holders (0–1 BTC) had been steadily accumulating since the peak, while mid-sized wallets began to liquidate after the price crossed $118,000. The 100–1,000 BTC group was split between accumulation and distribution, with $105,000 emerging as a critical support level. Below this threshold, the lack of cost-based support between $105,000 and $90,000 could intensify downward pressure, pushing the price toward $92,000–$89,000 if the support breaks. The seasonal weakness in the August–September period further compounded the bearish outlook, with historical data showing an average decline of 21.7% during the "ghost month." Additionally, the weakening momentum in the BTC/EUR pair and diminishing enthusiasm for spot ETFs have raised concerns about the sustainability of the current rally. The crypto market also faced a liquidity shock when over $300 million in long positions were liquidated within a single hour, according to CoinGlass. Ethereum (ETH) and Dogecoin (DOGE) followed Bitcoin’s downward trajectory, with Ethereum briefly reaching a record high of nearly $5,000 before retreating to around $4,800. The broader altcoin market mirrored BTC’s volatility, further exacerbating the liquidation wave. Despite the sell-off, Bitcoin futures open interest reached an all-time high of 762,700 BTC, reflecting sustained trader engagement, albeit with bearish sentiment evident through the premium of put options over calls. The 8% annualized premium for Bitcoin futures remained neutral, signaling limited conviction in a near-term price rebound. The recent liquidation of a $13 billion whale position into Ether and futures also highlighted a strategic shift in capital allocation, though the broader implications for market stability remain uncertain. As the market digests the latest developments, investors are closely monitoring the $105,000 level for Bitcoin and the $13.8 billion monthly options expiry as potential turning points.

Source: [1] Bitcoin holders 'distribute' as $105K becomes BTC's last stronghold (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold) [2] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives) [3] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/)