Bitcoin News Today: Bitcoin's Battle at $105K: A Test of Institutional Faith

Bitcoin's price has retreated below $112,000, drawing attention to critical support levels as short-term holders approach their realized price of $107,000. On-chain data indicates that all wallet cohorts are currently in distribution mode, with mid-sized holders (10–100 BTC) exerting the most selling pressure [3]. The price decline has also coincided with a drop in Bitcoin's dominance to 58.21%, the lowest since January, signaling a shift in relative strength to altcoins [2]. Technical indicators, including the RSI dropping below the 50.00 mark and the death cross forming on the EMA lines, underscore bearish momentum [2].

A key focus for investors is whether Bitcoin can hold above $105,000, a level that aligns with the cost basis of short-term holders (STH) who purchased in the past three to six months. If this level is breached, the next major support could be in the $92,000–$89,000 range, where more substantial demand might emerge [3]. The wide gap between short-term and long-term cost bases—$111,900 for the former and $89,200 for the latter—suggests a potential acceleration in downside momentum if selling pressure continues [3].

Market sentiment remains divided, with some analysts suggesting the current pullback aligns with Bitcoin’s seasonal tendencies. Historically, the period from August to September has seen an average decline of 21.7%, with this year’s ghost month (Aug. 23–Sept. 21) increasing the likelihood of further downward movement [3]. Additionally, the weakening USD/EUR ratio, which has not seen a new all-time high since 2024, raises concerns that Bitcoin’s recent rally may be driven more by dollar depreciation than intrinsic demand [3].

Corporate Bitcoin adoption, however, continues to gain traction. Japanese firm Metaplanet recently announced the purchase of an additional 103 BTC, increasing its total holdings to 18,991 BTC and securing its place in the FTSE Japan Index [1]. This inclusion elevates Metaplanet from a small-cap to a mid-cap status, signaling broader institutional acceptance of corporate Bitcoin treasury strategies. The company’s aggressive accumulation plan, aiming to reach 210,000 BTC, is partly funded through stock dilution, allowing continued Bitcoin purchases without depleting cash reserves [1].

The integration of Bitcoin-forward companies into major equity indices introduces both opportunities and risks. Institutional investors face new challenges as passive inflows into indices like the FTSE Japan could channel capital into Bitcoin-heavy firms, offering indirect exposure [1]. However, the volatility of Bitcoin prices may create unexpected risks for index-tracking funds, especially in the short term. Eric Trump, who joined Metaplanet as a strategic adviser, is expected to attend the firm’s shareholder meeting in September, further highlighting the convergence of traditional finance and digital asset strategies [1].

Looking ahead, the coming weeks will test whether Bitcoin can stabilize above $107,000 or face further correction. Analysts are closely watching for signs of accumulation or capitulation, particularly among mid-sized holders. The broader market remains under pressure, with derivatives positioning and on-chain metrics indicating weak demand and continued distribution. If Bitcoin fails to rebound, the next key level to monitor is $93,571, a target in the most bearish case [2].

Source:

[1] 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)

[2] Bitcoin (BTC) Price Collapse to $111K Signals Trouble (https://www.ccn.com/analysis/crypto/bitcoin-price-collapse-btc-signals-trouble-crypto-recovery-uncertain/)

[3] Bitcoin holders 'distribute' as $105K becomes BTC's last ... (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)