Bitcoin News Today: Bitcoin's $107,800 Support Test Could Spark Market Chaos

Bitcoin prices dipped below $108,000 on Monday morning as traders evaluated macroeconomic signals entering September, according to data from The Block. At 1:50 a.m., Bitcoin was trading at $107,866, a 0.71% decline from the previous day, marking its lowest range since early July. Ether followed a similar trend, dropping 1% to $4,398, while other major cryptocurrencies also saw declines, including XRP at 3.67% and Solana at 2.71%. The downward pressure came after the release of the U.S. Personal Consumption Expenditures (PCE) data, which showed core inflation rising to 2.9% year-on-year in July—its highest level since February. While this figure was in line with expectations, it reinforced concerns about inflation persistence, dampening hopes for a Fed rate cut in September [1].

Market analysts noted that Bitcoin's key psychological support level is currently at $100,000, a threshold where leveraged positions are under pressure and liquidity remains fragile. A breach could trigger a broader liquidity crunch and potentially extend the decline. Vincent Liu of Kronos Research highlighted that bearish sentiment intensified following a series of large whale sell-offs that led to the liquidation of leveraged positions. Meanwhile, Ether’s critical support is identified at $4,000, and a drop below this level could also deepen the selloff [1].

The market is now closely watching the upcoming non-farm payrolls (NFP) report, which will offer further insight into the U.S. labor market and inform expectations for the Federal Reserve’s interest rate decisions. Liu explained that unexpected data—whether stronger or weaker than expected—could drive sharp price swings. Stronger-than-anticipated employment numbers may reduce risk appetite, weighing on crypto prices, while weaker numbers could boost demand. The FOMC meeting is scheduled for September 16–17, and the CME Group's FedWatch Tool currently gives an 87.6% probability of a 25 basis point rate cut [1].

From a technical perspective, Bitcoin is currently trading near $109,400, having fallen 5.65% over the past month. Analyst Yonsei_dent from CryptoQuant identified the $107,800 level as a crucial support for maintaining a bullish structure. This level aligns with the weighted average cost basis of short-term holders, making it a key psychological barrier. A breakout below this level would likely put many short-term investors in a loss position, potentially accelerating the selloff. Conversely, a recovery past $112,600–$116,400—representing the cost bases for 1–3 month and 1-week to 1-month holders—could restore bullish momentum and potentially challenge Bitcoin’s recent all-time high [2].

The broader macroeconomic environment remains a key variable. Despite the recent PCE data, the probability of a September rate cut remains high, according to market indicators. However, some analysts caution that expectations may not align with actual policy decisions. For example, BitMEX co-founder Arthur Hayes has suggested that Fed Chair Jerome Powell may choose to maintain independence and resist political pressure for rate cuts. This uncertainty adds volatility to the market as investors balance the risk of overpricing a rate cut against the possibility of further tightening [3].

While Bitcoin’s price movements remain tied to macroeconomic developments, the altcoin market is showing signs of strength despite the volatility. Bitcoin’s dominance has declined from 65% in June to 57.4%, indicating that altcoin market share is rising. The total market cap for altcoins has surged to over $1.65 trillion, and the CMC Altcoin Season Index has climbed from 15 to 50. With the SEC's anticipated October decisions on several altcoin ETFs, including those for Solana, XRP, and Chainlink, the market is preparing for a potential "ETF Altcoin Season," which could drive a parabolic bull run [3].

Source: [1] Bitcoin, Ether Slumps Over Weekend (https://www.theblock.co/post/368882/bitcoin-ether-slumps-over-weekend) [2] Bitcoin’s Critical Support Level at $107,800 Could Determine Future Market Direction (https://thecurrencyanalytics.com/altcoins/bitcoins-critical-support-level-at-107800-could-determine-future-market-direction-193921) [3] The Fed Rate Cut Gamble: Markets Are Betting Big, But Altcoin Season May Not Wait (https://www.forbes.com/sites/aliceliu/2025/08/28/the-fed-rate-cut-gamble-markets-are-betting-big-but-altcoin-season-may-not-wait/)