Bitcoin News Today: Bitcoin's Crossroads: Whales, Support Levels, and the Path Ahead

Bitcoin's price continues to struggle near the psychological $110,000 level after experiencing a sharp correction in late August, with the cryptocurrency falling to a six-week low of around $107,500 on August 29. Despite some stability observed in the following 24 hours, the market has yet to demonstrate the strength necessary to break above the $110,000 threshold. This has raised questions among investors and analysts about whether the recent downturn is a temporary consolidation phase or the beginning of a more extended bearish trend. As of the latest data, Bitcoin is trading at approximately $108,689, reflecting a nearly 6% decline in value over the past week [1].

According to on-chain analysts such as CryptoOnchain, the recent pullback is largely attributed to heavy profit-taking by large investors, often referred to as "whales." These movements have led to a significant shift in market dynamics, prompting analysts to highlight key support levels that could determine Bitcoin’s next major price action. The first of these is the Short-Term Holder (STH) Realized Price, which represents the average acquisition price for investors who have held their Bitcoin for one to three months. Historically, this level has served as a dynamic support and resistance, and Bitcoin is currently testing this threshold, which may determine near-term direction [1].

Another critical support level identified by on-chain metrics is the Realized Value Model's Mid Price, derived from the Market Value to Realized Value (MVRV) and the Realized Price. This metric has consistently acted as a reliable support across multiple market cycles. The current level is approximately $92,000, and if Bitcoin were to breach this threshold, it could signal the beginning of a prolonged corrective phase [1].

Technical analysis further underscores the challenges facing Bitcoin. The price has fallen below the 100-day moving average and the STH Realized Price, which has increased market caution. A similar breakdown earlier this year in February led to a 20% retracement, and analysts are closely watching to see whether the current correction follows a similar trajectory [3]. Additionally, momentum indicators such as the RSI, MACD, and CCI point to oversold conditions, though the overall market remains fragile.

Despite the short-term bearish momentum, some long-term indicators remain positive. Exchange reserves have been declining since early 2024, suggesting that both institutional and retail investors are moving Bitcoin into long-term storage. Spot ETFs now hold over 1.3 million BTC, further pulling liquidity off exchanges. These structural developments, combined with a cooling in futures volumes and a decline in speculative trading, indicate a potential foundation for future price appreciation [3].

The broader macroeconomic environment could also play a role in Bitcoin’s near-term performance. With global financial markets reacting to interest rate policies, inflation, and geopolitical events, investors are reevaluating risk assets. Additionally, regulatory actions in key markets could introduce further volatility. However, the weakening correlation between Bitcoin and the U.S. Dollar Index, along with expectations of a Fed rate cut in September, may provide tailwinds for Bitcoin in the coming months [3].

As the market awaits clarity on Bitcoin’s next direction, investors are advised to closely monitor the key support and resistance levels identified by on-chain analysts. The immediate support zone is at $107,000, with deeper support at $104,000–$104,700 and a hard defense line at $100,000. A breakout above $114,000 would open the path to $120,000 and potentially a return to all-time highs. Conversely, a retest of $104,000 is likely if $107,000 fails to hold, and a breakdown below $92,000 could trigger a prolonged correction [3].

Source:

[1] Bitcoin Price Lags Below $110K — On-Chain Levels To (https://www.mitrade.com/insights/news/live-news/article-3-1083022-20250831)

[2] Bitcoin Price Struggles Below $110K Amid August Market (https://thecurrencyanalytics.com/altcoins/bitcoin-price-struggles-below-110k-amid-august-market-uncertainty-193956)

[3] Bitcoin Price Forecast: BTC-USD Targets $107K–$124K Levels (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-weighs-107k-usd-support-vs-124k-usd-upside)