Bitcoin News Today: Bitcoin's Descent Unveils a War Between Shorts and Institutional Bulls

Bitcoin extended its decline below $115,000 amid growing bearish signals and institutional activity, with on-chain metrics and technical patterns suggesting a deeper correction could be on the horizon. The price dropped nearly 8% from its record high of $124,500 reached earlier in the week, sparking concerns among traders and analysts about the sustainability of the recent bull run. Technical indicators, including a confirmed breakdown from a rising wedge on the daily chart, pointed to increased selling pressure and weakening momentum. Analyst Captain Faibik highlighted the bearish reversal structure and projected potential support levels at $110,000–$112,000, with further downside risks opening if this range were to fail. A more extreme scenario could see the price testing the $98,000–$100,000 psychological level by September, marking a 20% correction from the recent peak [1].

On-chain data from platforms such as Glassnode and CryptoQuant reinforced the bearish sentiment. Whale activity showed a sustained decline in addresses holding over 10,000 BTC and those in the 1,000–10,000 BTC range, indicating that large holders had taken profits near the recent highs. Additionally, over 20,000 BTC held by short-term investors (STHs) was moved to exchanges at a loss in just three days, a behavior pattern historically associated with deeper corrections. Analysts noted that this loss realization by short-term holders could signal either a short-lived market reset or the start of a more prolonged downturn [4].

A double-top pattern forming on the weekly chart also raised concerns, drawing comparisons to the 2021 price action that preceded a 77% decline. If this pattern plays out similarly, the price could fall toward the 50-day EMA at around $94,750, as projected by Swissblock. The 50-day EMA has historically acted as a strong accumulation zone for Bitcoin, and a break below it could validate the bearish scenario. However, the pattern’s impact could be tempered by macroeconomic factors, particularly the anticipated 25-basis-point rate cut by the U.S. Federal Reserve in September, according to CME data. Analysts noted that liquidity expansion and a more accommodative monetary policy could help offset technical weaknesses and support Bitcoin’s broader uptrend [5].

Meanwhile, institutional demand for Bitcoin remained robust despite the price correction. Major corporate buyers such as Strategy and Metaplanet continued to add to their Bitcoin treasuries, with Strategy acquiring 430 BTC for $51.4 million and Metaplanet purchasing 775 BTC for $93 million. These purchases reflected the ongoing trend of institutional adoption, as over 200 public companies now hold Bitcoin as part of their treasury management strategies. Strategy, a U.S.-based company, now holds a total of 629,376 BTC, with an average acquisition cost of $73,320 per coin, while Metaplanet increased its holdings to 18,888 BTC at an average price of $102,653 per coin. These moves highlight growing confidence in Bitcoin as a strategic asset class, despite short-term volatility [2].

Market liquidity also played a role in Bitcoin’s price action, with over $500 million in long positions being liquidated in the past 24 hours, according to Coin Glass. The forced selling was driven by higher-than-expected July wholesale inflation data, which raised uncertainty around the timing of the Fed’s rate cut. This triggered a broader selloff across the crypto market, with Ethereum also retreating from its recent highs. However, Bitcoin ETFs reported strong weekly inflows, suggesting continued demand for the asset despite the pullback. Analysts emphasized that the current market environment differs from 2021, as the Fed is moving toward stimulus rather than tightening, which could provide a cushion for Bitcoin in the coming months [3].

Source:

[1] Bitcoin Price Rising Wedge Breakdown: How Low Can ... (https://cointelegraph.com/news/btc-price-rising-wedge-breakdown-how-low-can-bitcoin-go)

[2] Bitcoin Price Slides Below $115000 As Strategy And ... (https://bitcoinmagazine.com/markets/bitcoin-price-slides-below-115000-as-strategy-and-metaplanet-buys-additional-bitcoin)

[3] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[4] Short-term Bitcoin Holders Panic Sell 20K BTC This Week. (https://cointelegraph.com/news/will-bitcoin-price-fall-to-110k-short-term-holders-sell-22k-btc-at-a-loss)

[5] Analysts see risk of Bitcoin slipping below $90000 (https://forklog.com/en/analysts-see-risk-of-bitcoin-slipping-below-90000/)