Bitcoin News Today: Bitcoin's $110K Test: A Battle Between Bulls and the Market's Next Move

Bitcoin’s price has retreated below key psychological levels, triggering heightened market scrutiny and speculative debate over its near-term trajectory. On August 27, the cryptocurrency was trading near $109,724, having dropped nearly 12% from its recent peak above $124,500. The selloff was precipitated by a range of macroeconomic and on-chain developments, including a significant move by Japanese firm Metaplanet, which purchased an additional 103 BTC worth $11.7 million, bringing its total holdings to 18,991 BTC valued at $2.2 billion. This action came as the company was upgraded to mid-cap status in the FTSE Japan Index, marking a notable development in the growing trend of corporate Bitcoin treasury strategies [2].

Technical indicators and on-chain data point to increased bearish momentum. The 100-day exponential moving average (EMA), currently at $110,820, has been breached, raising concerns among traders about a potential deeper correction. Analysts warn that if Bitcoin continues its decline, it may test the $101,000 level, represented by the 200-day simple moving average (SMA), which had not been breached since mid-April [1]. Additionally, on-chain analyst Axel Adler Jr. highlighted the $100K–107K range as a critical support zone, where the STH Realized Price and SMA 200D intersect, offering a potential floor for the market. Should this level fail, further support is expected around the $92K–93K range [1].

The market has also seen significant liquidation activity, with over $700 million in Bitcoin long positions being liquidated within a 24-hour period. This reflects the fragility of leveraged positions as traders reassess risk exposure amid the broader correction. Meanwhile, some market participants are watching for signs of a short squeeze, with trader BitBull suggesting that downside liquidity has already been largely absorbed, potentially setting the stage for a rebound toward $114K–$115K [1].

Analysts remain divided on the implications of these developments. While some, like Benzinga’s pseudonymous analyst Ali, caution that Bitcoin is "hanging by a thread" below $112,000 and could face further downside pressure, others see the recent pullback as a typical correction within a larger bull market trend. Prominent analytics firm Glassnode noted that the $104,000–$108,000 range represents a critical support zone, backed by significant investor activity and over 1.15 million BTC accumulated over the past year [4]. This accumulation has created a dense cluster of realized prices that may serve as a strong floor for the market in the event of a further correction [4].

Corporate and institutional behavior also highlights mixed signals. MicroStrategy, the largest corporate holder of Bitcoin, continued to add to its holdings during the selloff, purchasing 3,081 BTC for $356.9 million. However, whale activity has shown divergence, with one entity recently depositing 22,769 BTC (~$2.59B) on Hyperliquid for sale, underscoring the complex dynamics shaping market sentiment [3]. Additionally, Ethereum has seen stronger inflows compared to Bitcoin, with Ethereum ETFs attracting $2.5 billion in inflows month-to-date, while Bitcoin ETFs have faced consistent outflows. This shift suggests a broader rotation toward Ethereum, potentially impacting Bitcoin’s dominance in the digital asset market [3].

Looking ahead, the market will closely watch macroeconomic indicators, particularly the upcoming core PCE inflation report and employment data, which could influence the timing of the Federal Reserve’s next interest rate decision. A softer-than-expected print could reinvigorate demand for risk assets like Bitcoin, while stronger data may prolong the current bearish trend. The next critical levels for Bitcoin are $110K and $105K, with the broader trend remaining intact should the price rebound above the 20-week EMA (~$108,000) [3].

Source:

[1] Bitcoin drops under $109K: How low can BTC price go? (https://cointelegraph.com/news/bitcoin-drops-under-109k-how-low-can-btc-price-go-next)

[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] Bitcoin Price Forecast: BTC-USD at $110K, Outlook After 12 ... (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-holds-110k-usd-as-fed-shock-etf-flows)

[4] Bitcoin On-Chain Model Shows Critical Support ... (https://www.mitrade.com/insights/news/live-news/article-3-1063943-20250823)