Bitcoin News Today: Bitcoin's $108K Crossroads: Will Bulls Defend or Break?

Bitcoin’s price has been in a precarious position as traders monitor key macroeconomic events and technical indicators for signs of a potential shift in market sentiment. The cryptocurrency, currently trading near $108,744, faces bearish momentum signals and a growing sense of uncertainty among investors, despite institutional accumulation and bullish forecasts from market participants. Analysts are closely watching for a resolution to the ongoing consolidation phase, which could determine whether Bitcoin remains stable or enters a more significant correction.

Bitcoin’s recent price action has reflected a mix of short-term bearish signals and underlying fundamental support. The RSI reading of 38.62 indicates that BTC is nearing oversold territory, but the bearish divergence in the MACD and the positioning of BTC below its key moving averages suggest that downward pressure is gaining strength. The cryptocurrency is trading near the lower Bollinger Band at $106,494, a level that typically signals oversold conditions but also the potential for a deeper pullback. The 7-day, 20-day, and 50-day SMAs currently sit above the price at $110,234.63, $114,362.23, and $116,131.73, respectively, while the 200-day SMA provides the only long-term support at $101,252.07.

The technical divergence is further underscored by the fact that the stochastic indicators show %K at 13.68 and %D at 11.65, reinforcing the notion that momentum is trending lower. While these readings could set the stage for a short-term bounce, the bearish MACD structure implies that any rallies might be limited in scope. The immediate support level at $107,350 aligns with the Bollinger Bands lower band and acts as a critical threshold for bulls to defend. A break below this level could trigger automated selling and push BTC toward the psychological $105,000 level.

Institutional support has been a notable factor in the BTC price narrative. MicroStrategy, for example, recently added 430 BTC to its holdings, bringing its total to 629,376 BTC valued at over $72 billion. This continuous accumulation by corporate entities underscores long-term confidence in Bitcoin’s utility and value. Additionally, the Trump family, particularly Eric Trump, has voiced bullish sentiment, predicting that Bitcoin could reach $1 million. While such forecasts are not immediate price drivers, they serve as psychological anchors that may influence retail investor behavior during periods of heightened volatility.

Whale activity has also played a role in shaping recent price dynamics. A massive sale of 24,000 BTC by a single whale, valued at over $2.7 billion, triggered a flash crash that pushed the price temporarily below $109,000. This event exacerbated the already fragile market structure, highlighting the vulnerability of thin order books and overleveraged positions. The selloff led to $900 million in liquidations across derivatives markets, with 90% of these being long positions. Analysts attribute this to a combination of whale-driven distribution and weak on-chain activity, which has left the market exposed to large transactions that can amplify selling pressure.

Despite the bearish short-term indicators, the long-term outlook for Bitcoin remains supported by macroeconomic and structural factors. The upcoming Bitcoin halving in 2025 is expected to reduce the rate of new supply entering the market, historically a catalyst for price acceleration. Moreover, the integration of USDT with Bitcoin’s RGB protocol marks a technological advancement that could enhance Bitcoin’s scalability and utility, potentially driving future adoption. JPMorgan and other institutional players continue to highlight Bitcoin’s undervaluation relative to gold, suggesting that its inclusion in institutional portfolios could drive demand.

Bitcoin ETFs have also emerged as a key factor in the market’s stability. Cumulative inflows into U.S. spot BTC ETFs have surpassed $54 billion, with BlackRock’s IBIT ETF alone adding $63.7 million in the latest weekly report. These inflows serve as a stabilizing force, even as the price experiences short-term volatility. However, recent outflows totaling over $1 billion have added to the pressure, reflecting a shift in investor sentiment as capital rotates into other assets like Ethereum.

Looking ahead, traders and investors are advised to remain cautious as the market approaches a critical juncture. If Bitcoin holds above the $107,350 support level, it could rally back toward $112,000 and test the 200-day SMA. A sustained move above this level could invalidate the bearish momentum thesis and set the stage for a test of the $115,000 resistance zone. Conversely, a break below $107,350 could lead to a deeper correction toward $105,000 or even $100,000.

In summary, Bitcoin’s current price action reflects a delicate balance between bullish fundamentals and bearish technical indicators. While institutional buying and macroeconomic catalysts provide a strong foundation for long-term growth, short-term volatility remains a key concern. As traders await key macroeconomic data and further developments in institutional adoption, the next few days will be pivotal in determining whether Bitcoin can stabilize or if a more significant correction is on the horizon.

Source:

[1] Bitcoin RSI Hits 38.62 as BTC Price Consolidates Near $108K (https://blockchain.news/news/20250831-bitcoin-rsi-hits-3862-as-btc-price-consolidates-near-108k)

[2] Bitcoin (BTC) Price Prediction: Bitcoin Dips Below $110K as Traders Watch $105K Support for Possible Rebound (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-dips-below-110k-as-traders-watch-105k-support-for-possible-rebound)

[3] Dormant Whale Sell-Off and ETF Outflows Weigh on Bitcoin as Price Drops Below $110K (https://finance.yahoo.com/news/dormant-whale-sell-off-etf-124406217.html)

[4] Bitcoin Supply In Profit Hits Historical Threshold (https://www.mitrade.com/insights/news/live-news/article-3-1077244-20250829)

[5] Why is Bitcoin Going Down Today? BTC Price Falls Below $109K, Testing 2-Month Lows (https://www.financemagnates.com/trending/why-is-bitcoin-going-down-today-btc-price-falls-below-109k-testing-2-month-lows/)

[6] BTC Price Prediction: Bitcoin Slips Below $110K as Market Selloff Continues (https://coinjournal.net/news/btc-price-prediction-bitcoin-slips-below-110k-as-market-selloff-continues/)