Bitcoin News Today: Bitcoin Faces Crucial Crossroads: Will Support Hold or Panic Peak?

Bitcoin’s price has dropped below the $112,000 mark, raising concerns among analysts that further declines could test key support levels. The cryptocurrency has been under pressure as a result of recent selling activity, with some observers suggesting that if Bitcoin fails to hold above $107,000, it could slide toward the $90,000–$95,000 range. This potential breakdown comes amid broader market volatility, with equity markets also experiencing downward trends, contributing to a risk-off environment for risk assets like crypto.

Peter Schiff, a long-time Bitcoin skeptic, has highlighted the recent 13% drop from Bitcoin’s recent peak as a red flag. He warns that the decline could signal the start of a deeper correction, potentially pushing the price down to $75,000, a level close to MicroStrategy’s average cost of acquisition. Schiff advises investors to consider selling now to re-enter at lower levels if the price corrects further. Other analysts, including Altcoin Sherpa and Ted, have also pointed to CME futures gaps and distribution patterns as potential indicators of weakness. A gap around the $94,000–$96,000 level has been identified as a critical area to watch, as Bitcoin often fills such gaps during consolidation phases.

Despite the bearish signals, some analysts remain cautiously optimistic. Michael van de Poppe, a prominent crypto analyst, suggests that the current dip could be an opportunity to buy. If Bitcoin rebounds and reclaims the $114,000 level, it could set the stage for a new all-time high. However, should the price continue to weaken, van de Poppe is monitoring the $103,000 level as the next key support zone. CrediBULL also notes that $107,000–$110,000 is a crucial area for a potential reversal, with further downside below $105,000 signaling the likelihood of a deeper correction, though not necessarily the end of the bull market unless prices fall below $74,000.

Technical analysis by TradingShot suggests that Bitcoin may still defy historical trends and avoid a sustained bearish phase. The analyst noted that BTC has been trading within an upward channel since May, with two bullish legs of nearly equal size. A similar pattern has historically preceded rebounds, including a June rally. If this trend repeats, a 21% upward move could push the price toward $130,000. The current price test of the 20-week moving average—a key level in bull cycles—adds to the case for a potential rebound.

Market sentiment has turned defensive, as highlighted by macroeconomist Alex Krüger. In a recent post, Krüger noted that crypto charts have become increasingly bearish, with Bitcoin and ether falling below short-term trendlines and showing signs of exhaustion in derivatives markets. He argues that when markets appear this weak, panic often peaks, setting the stage for a reversal. Krüger also pointed to the imbalance in options markets, where puts are significantly more expensive than calls, as a sign of heightened fear. He expects the Federal Reserve’s next policy meeting in late September to influence market direction, particularly if rate cuts are more aggressive than expected.

While the near-term outlook for Bitcoin remains uncertain, the broader market backdrop still appears supportive. The 50-day simple moving average currently sits at $116,091, acting as a resistance level, while the 200-day SMA remains at $95,954, indicating that the longer-term bullish trend is intact. However, momentum remains fragile, with the RSI indicating oversold conditions that could either signal a continuation of selling or a potential rebound if buyers re-enter the market.

Source:

[1] Is Bitcoin Price Going to Crash? Schiff, Van de Poppe, and ... (https://coinpedia.org/news/is-bitcoin-price-going-to-crash-schiff-van-de-poppe-and-others-weigh-in/)

[2] Crypto Charts Look 'So Broken and Bearish They're Bullish ... (https://finance.yahoo.com/news/crypto-charts-look-broken-bearish-210000172.html)

[3] Why Bitcoin is set to defy September downturn and target ... (https://finbold.com/why-bitcoin-is-set-to-defy-september-downturn-and-target-130000/)

[4] Insider Trading Suspicions Mount As Crypto Treasuries ... (https://www.mitrade.com/insights/news/live-news/article-3-1081076-20250829)