Bitcoin News Today: Bitcoin Hangs in Balance: OG Whales and Market Forces Clash at $110K

Bitcoin traders are closely monitoring price movements as the cryptocurrency remains above the $110,000 level, sparking renewed optimism among market participants. Analysts have highlighted both the challenges and opportunities for Bitcoin in the near term, with on-chain metrics and market dynamics pointing to a complex picture for traders. According to pseudonymous analyst Ali, Bitcoin is "hanging by a thread" after slipping below the $112,000 support level. On-chain data indicates a potential interim support level at $110,500, with a significant gap between that and $108,000 offering limited capacity to absorb selling pressure. The recent breach of $112,000 has added to market caution, particularly as Bitcoin ETFs collectively offloaded approximately 8,850 BTC last week and open interest in futures contracts has increased despite the price correction [2]. Meanwhile, Gracy Chen, CEO of Bitget, offered a more balanced outlook, stating that Bitcoin is expected to consolidate between $110,000 and $120,000 over the next one to two weeks. She noted Ethereum’s rally past $4,300, driven by dovish comments from Federal Reserve Chair Jerome Powell, as a signal of robust ecosystem demand and potential onset of an altcoin season. On-chain flows support this view, with data showing whales rotating capital from Bitcoin into Ethereum, accelerating ETH’s momentum [2]. On the derivatives front, open interest (OI) across major venues has begun to decline, in line with the downward price action over the past few days. This suggests traders are actively exiting leveraged positions, a common behavior during periods of uncertainty. BTC OI now stands at $30.3 billion, slightly below the all-time high of $32.6 billion [3]. In options markets, the upward-sloping implied volatility curve indicates that the market expects long-term volatility to be higher than short-term, with other metrics pointing to immediate bearish sentiment. The recent shift of the 25 delta skew into negative territory for near-term maturities reflects a clear move in market sentiment, as traders pay a premium for puts over calls to hedge against downside risk. Additionally, the 24-hour put/call volume has shown a significant skew towards puts, further reinforcing the bearish outlook. Funding rate APRs across perpetual swap venues are also starting to rise, with BTC annualized funding on Binance bouncing back to around 10% after briefly turning negative [3]. In the broader market context, the STH-RP (Short-Term Holder Realized Price) metric, currently at $108,800, is serving as a key support level for short-term holders. Historically, this metric has acted as a critical reference during bull markets. The STH-SOPR (Short-Term Holder Spent Output Profit Ratio), which measures profits or losses on coins younger than 155 days, indicates that short-term investors are currently selling at a loss. This behavior is often seen near local market bottoms, but full capitulation has yet to occur [3]. The options market also points to a “max pain” level at $116,000, where the largest number of options expire worthless. This level is currently above the spot price, suggesting that upside relief could be on the horizon. With the key range between $113,500 and $117,200 remaining open in CME futures, traders are monitoring this zone closely for potential price action [3]. Analyst Willy Woo has also weighed in on Bitcoin’s price trajectory, noting that early investors, who acquired their holdings at much lower prices, are playing a significant role in shaping current market dynamics. According to Woo, these early investors, often referred to as “OG whales,” require substantial new capital to absorb each BTC they sell. He estimates that $110,000+ in new capital is needed to absorb each BTC sold by these investors, which could contribute to price stagnation or volatility until their holdings are fully absorbed [1]. However, not all analysts agree with this view. A Bitcoin advocate known as Parman argued that early holders from 2011 are unlikely to sell large portions of their holdings, given the billions they have locked in. “They’ll sell a little, maybe 10 million, tops. There aren’t enough of them for this to make a big impact,” they added [1]. Source: [1] Bitcoin Not Rising Quickly Enough? Analyst Says Early ... (https://finance.yahoo.com/news/bitcoin-not-rising-quickly-enough-203110676.html) [2] Bitcoin 'Hanging By A Thread' Around $112,000, Analyst Warns (https://finance.yahoo.com/news/bitcoin-hanging-thread-around-112-233122642.html) [3] Bitcoin Traders Eye Upside as BTC Holds Above $110K (https://www.coindesk.com/daybook-us/2025/08/27/bitcoin-traders-eye-upside-as-btc-holds-above-usd110k-crypto-daybook-americas)