Bitcoin News Today: Bitcoin's Correction Reveals a Battle Between Short-Term Gains and Long-Term Faith

Bitcoin’s recent price correction has ignited concerns among investors, with the world’s largest cryptocurrency trading near $110,000 after slipping from an all-time high of $124,128 earlier in August. Analysts from Bitfinex and other market observers have noted that short-term traders have played a central role in the pullback, with profit-taking activity intensifying as Bitcoin failed to break past $120,000 repeatedly. According to CryptoQuant contributor Arab Chain, the sharp sell-off was primarily driven by speculative traders locking in gains after a record-breaking bull run, rather than widespread panic selling. Long-term holders, in contrast, have largely refrained from large-scale liquidations, signaling continued conviction in the asset’s long-term trajectory.

The correction has raised questions about the price floor for Bitcoin, with Bitfinex analysts suggesting that the market may be approaching a bottom around $93,000. The firm’s analysis highlights that macroeconomic factors—such as bearish producer price index (PPI) reports and geopolitical tensions linked to Donald Trump’s trade policies—have contributed to the downturn. Additionally, the recent movement of capital from Bitcoin to altcoins, particularly Ethereum, has exacerbated the pullback. These rotations, according to Bitfinex, indicate a broader market imbalance that may soon correct, especially if institutional exchange-traded fund (ETF) inflows resume in the fourth quarter.

Technical indicators also suggest that the correction is part of a normal cyclical adjustment rather than an outright bear market. The current drawdown of about 12% is within the typical range for the cycle, as noted by CryptoQuant’s Darkfost, who emphasized that retracements in the 20–25% range are not uncommon. Moreover, the divergence between Bitcoin’s price and its Relative Strength Index (RSI) suggests that buying pressure is still present beneath the surface. The 200-day moving average remains supportive, and a sustained recovery above $110,000 could set the stage for a retest of the $120,000 resistance level.

September, historically a weak month for Bitcoin, has intensified market jitters. Since 2013, the cryptocurrency has closed in the red in eight out of twelve Septembers, averaging a loss of about 3.80%. However, recent comparisons with the 2017 price action suggest that the current correction may not follow the same pattern. Analyst Rekt Fencer pointed out that Bitcoin’s 2017 and 2025 price behavior shows striking similarities, with both cycles experiencing sharp August declines followed by consolidation and eventual rallies. The current support zone between $105,000 and $110,000 is seen as a critical area that could determine whether the market continues its bullish trend or faces further retracement.

Meanwhile, macroeconomic factors continue to shape Bitcoin’s outlook. A weaker U.S. dollar, driven by expectations of Federal Reserve rate cuts, may serve as a tailwind for Bitcoin in September. The declining correlation between Bitcoin and the US Dollar Index (DXY) suggests that the cryptocurrency is becoming less sensitive to dollar strength, which could enhance its appeal to investors seeking inflation-hedging assets. Analysts like Ash Crypto have predicted that two rate cuts in Q4 could inject trillions into the crypto market, potentially fueling a parabolic phase for Bitcoin and altcoins alike.

Source:

[1] Bitcoin Price Drop Analysis Bitfinex September (https://beincrypto.com/bitcoin-price-drop-analysis-bitfinex-september/)

[2] Bitcoin price correction short-term selling 2025 (https://crypto.news/bitcoin-price-correction-short-term-selling-2025/)

[3] Will Bitcoin price drop in September? (https://cointelegraph.com/news/will-bitcoin-price-drop-in-september)

[4] Bitcoin price drop to 72K possible due to macro liquidity conditions analyst (https://blockchair.com/zh/news/bitcoin-price-drop-to-72-k-possible-due-to-macro-liquidity-conditions-analyst--9b0fe6d090c606f2)

[5] Bitcoin valuation indicator hints at macro top as death cross appears (https://dieselgasoil.com/bitcoin-valuation-indicator-hints-at-macro-top-as-death-cross-appears/)