Bitcoin News Today: Bitcoin’s $105K lifeline becomes ultimate battleground for bulls and bears

Bitcoin fell below the $110,000 threshold on Monday, triggering $880 million in liquidations as large whale activity and market sentiment shifted sharply. The drop came after a brief rebound on Friday fueled by optimism from the Federal Reserve’s Jackson Hole symposium, which pushed Bitcoin to $117,300. However, momentum quickly dissipated over the weekend, with Bitcoin reversing course and hitting a six-week low of $110,600 by Monday. A bearish weekly engulfing candle on the BTC chart highlights the growing downside pressure, as onchain data from Glassnode reveals all wallet cohorts have entered a distribution phase, led by mid-sized holders holding between 10 and 100 BTC [1].

The synchronized selling behavior across wallet sizes underscores broad-based bearish sentiment. According to Trend Accumulation data, smaller holders (0–1 BTC) have been steadily accumulating since the recent peak, while 1–10 BTC wallets resumed buying below $107,000. By contrast, 10–100 BTC wallets turned net sellers after Bitcoin climbed above $118,000. The 100–1,000 BTC group remains split between accumulation and distribution around $105,000, identifying it as a critical support level before a potential major correction [1].

Bitcoin’s realized price data further supports this notion. The realized price for one to three-month holders stands at $111,900, while the three to six-month and six to 12-month cohorts are anchored at much lower levels of $91,630 and $89,200, respectively. This wide divergence highlights the heavy short-term positioning near recent highs versus longer-term holders with cost bases closer to $90,000. Analysts warn that a break below $105,000 could accelerate downside momentum due to the lack of dense cost support in that range [1].

Seasonal factors and ETF fatigue are also adding to the bearish backdrop. August and September have historically marked a period of weakness for Bitcoin, with an average decline of 21.7% during the so-called “ghost month” period. The current pullback aligns with this pattern, with analysts noting that the absence of sustained ETF enthusiasm and a failure to reach new all-time highs in BTC/EUR since 2023 suggest a weakening in organic demand [1]. Additionally, large whales remain active sellers, with one whale alone offloading 24,000 BTC worth $2.7 billion over the weekend, contributing to the flash crash [6].

The liquidation impact was severe, with over $300 million in positions lost in a single hour, primarily from longs. CoinGlass data showed that long positions accounted for 90% of the liquidations, with the largest single position valued at over $12 million [5]. The crash dragged most altcoins lower, including Ethereum, which had briefly touched a new all-time high of nearly $5,000 before retreating to around $4,800 [4]. Analysts are now closely watching whether Bitcoin can stabilize above the $113,500–$114,000 range, which could signal the resumption of an upward trend [6].

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 Price Drops Below $112000 As Metaplanet ... (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)

[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)

[4] Ethereum briefly touches new high, nears $5,000 (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)

[5] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone)

[6] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still ... (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)