Bitcoin News Today: Bitcoin's $110K Threshold: A Crossroads Between Collapse and Comeback

Bitcoin’s price has remained highly volatile in the week ending August 26, 2025, oscillating between key resistance and support levels amid shifting investor sentiment and macroeconomic uncertainty. The cryptocurrency briefly surged to $124,500 earlier in August but has since retreated to around $111,000, with analysts closely monitoring its ability to hold above $110K as a critical determinant of its next move. Over the past 24 hours, Bitcoin experienced a significant drop, falling below $112K and triggering a wave of liquidations exceeding $642 million in leveraged long positions. This decline was partly fueled by a whale dumping approximately 24,000 BTC ($2.6 billion) into the market, intensifying downward pressure [3].

The selloff intensified on Monday, with Bitcoin tumbling to as low as $111,300, reversing the previous Friday’s rally sparked by a dovish tone from Federal Reserve Chair Jerome Powell. However, broader geopolitical and market factors, including President Donald Trump’s removal of Federal Reserve Governor Lisa Cook, introduced fresh uncertainty about the Fed’s policy independence, prompting risk-off behavior across asset classes. Traders are now closely watching whether the price can stabilize above the $111,800 level, as a break below it could lead to further declines toward the $107K–$108K range. Several analysts, including Captain Faibik and Gert van Lagen, have highlighted the fragility of the current support zones and the potential for a deeper correction to $95K should the downward trend continue [2].

On the technical front, Bitcoin remains caught in a key trading range, with resistance clustering between $117K and $118K. Coinglass data indicates that over $3 billion in short positions are concentrated near $117,800, forming a defensive barrier for bears. A successful breakout above this level could trigger a short squeeze and push the price toward $123,000 or even retests of the $126,600 channel resistance. Conversely, a sustained break below $111,500 would expose Fibonacci support at $105,400 and eventually the $100K psychological floor. Analysts have also noted the importance of the 20-day EMA ($115,639) as overhead resistance, while the 20-week EMA (~$108K) continues to act as dynamic support. The weekly chart suggests that as long as Bitcoin holds above its 20-week EMA, the broader bullish trend remains intact [4].

Institutional and whale activity has further diversified the market dynamics. While MicroStrategy and other long-term holders have continued to accumulate BTC during dips, large whale sales have accelerated downside pressure. One whale recently listed 22,769 BTC (~$2.59B) for sale on Hyperliquid, contrasting with MicroStrategy’s recent $356.9 million BTC purchase. Additionally, Bitcoin ETFs have seen mixed flows, with $219 million in net inflows recorded on Monday—marking the first positive print in over a week—after weeks of outflows. Meanwhile, Ethereum has drawn significant capital, with ETH ETFs attracting $2.5 billion in inflows month-to-date. This shift in investor preference has pushed Bitcoin’s market dominance below 57%, raising questions about whether the leading cryptocurrency can reassert its leadership in the digital asset space [2].

Looking ahead, the market’s next major test will come with Friday’s core PCE inflation data, which could influence expectations for Federal Reserve rate cuts. A print above 0.3% could delay the anticipated easing cycle and further weigh on Bitcoin, while softer data may reignite risk-on sentiment. Analysts remain divided on the immediate outlook, with some calling for a deeper correction to $95K and others expressing cautious optimism for a recovery above $120K. On the options front, Deribit data shows heavy positioning in both $140K calls and $95K puts, signaling wide volatility expectations. For now, traders are advised to remain defensive, with the $110K threshold serving as a critical pivot for both technical and strategic decision-making [4].

Source: [1] Bitcoin late longs wiped out as sub-$110K BTC price calls ... (https://cointelegraph.com/news/bitcoin-late-longs-wiped-out-sub-110k-btc-price-calls-louder) [2] 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) [3] Bitcoin Drops Below $110K as Market Enters Risk-Off Mode (https://coinmarketcap.com/academy/article/bitcoin-drops-below-dollar110k-as-market-enters-risk-off-mode) [4] Bitcoin Price Forecast: BTC Holds $115K, Eyes Break Above ... (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-consolidates-at-115k-usd) [5] BTC Breaks Below $112K With Bears Eyeing Lower Targets (https://cryptoticker.io/en/bitcoin-crash-btc-breaks-below-112k-bears-eyeing-lower-targets/)