Bitcoin News Today: Bitcoin’s Battle at $108K: A Foundation Rebuilt or a Deeper Fall?

Bitcoin, which reached a record high of $124,500 in early September, faces renewed uncertainty as analysts warn of "seasonal headwinds" and potential volatility during the month. Onchain data and technical indicators suggest the market is still in a consolidation phase, with no clear signs of a bearish top. Of the 30 widely monitored peak indicators, none have signaled a bearish reversal, a contrast to historical patterns where overheated metrics like the Puell Multiple and MVRV Z-Score have typically signaled tops [1].

Bitcoin’s recent pullback has led to the liquidation of $70 million in leveraged long positions on Binance after the price dipped below $111,000. Open interest and cumulative net taker volume data revealed aggressive sell-side dominance, particularly from new investors who are sitting on average unrealized losses of -3.50%. In contrast, Short-Term Holders (STH), who have held Bitcoin for one to six months, remain profitable with an aggregate gain of +4.50% [1]. Analysts argue this represents a "capitulation phase" where weaker hands are being flushed out, creating a stronger foundation for future price appreciation.

The 20-week exponential moving average (EMA), currently around $108,000, has historically acted as a dynamic support level. Bitcoin remains above this critical threshold, keeping the door open for a resumption of the uptrend. If the price reclaims this level, the market could see a push toward the $117,000–$118,000 liquidity cluster or even the $150,000 target. However, a breakdown below the 20-week EMA could lead to a deeper correction toward the 50-week EMA near $95,300, a level that has historically marked local bottoms in prior bull cycles [1].

September, historically one of Bitcoin’s weakest months, is now a focal point for traders and analysts. According to Altcoin Sherpa, one of three possible scenarios is emerging: a choppy sideways trend, a sharp rebound fueled by a Fed rate cut, or a deeper macro-driven pullback to as low as $75,000 [4]. Options data also indicates shifting sentiment, with the 25-delta skew turning negative for both Bitcoin and Ethereum. This suggests an increased demand for downside protection, with the probability of Bitcoin returning to $100,000 by the end of September rising to 35% [2].

In the broader macroeconomic context, Brazil has begun exploring the possibility of establishing a Bitcoin Strategic Reserve. The proposed initiative would allocate up to 5% of the country’s $344 billion in international reserves into Bitcoin as a means of diversification and economic sovereignty [5]. The Brazilian Central Bank and Ministry of Finance, however, have raised concerns over Bitcoin’s volatility and its potential mismatch with the objectives of international reserve assets. While the bill has advanced to committee review, its future remains uncertain without broad consensus.

As the market navigates these uncertainties, the focus remains on key technical levels and macroeconomic triggers. A potential Fed rate cut in September could provide a bullish catalyst, while a continuation of current trends could result in a prolonged consolidation or a deeper correction. Institutional flows, particularly the movement of large BTC positions to Ethereum, also suggest ongoing strategic reallocations within the crypto ecosystem.

Source:

[1] Was $124K the top? Bitcoin's price peak signals tell a ... (https://cointelegraph.com/news/was-124k-the-top-bitcoin-price-peak-signals-different-story)

[2] Panicked Traders Brace For $100000 Bitcoin And $4000 ... (https://www.forbes.com/sites/digital-assets/2025/08/26/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[3] 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)

[4] 3 Scenarios Traders Must Watch After $109K Crash (https://coinpedia.org/price-analysis/bitcoin-september-forecast-3-scenarios-traders-must-watch-after-109k-crash/)

[5] Brazil's Congress Explores A Bitcoin Strategic Reserve (https://www.forbes.com/sites/astanley/2025/08/24/brazils-congress-explores-a-bitcoin-strategic-reserve/)

[6] Brazil to hold first hearing on proposed $19 billion Bitcoin ... (https://cryptoslate.com/brazil-to-hold-first-hearing-on-proposed-19-billion-bitcoin-strategic-reserve/)