Bitcoin News Today: Bitcoin's Plunge Tests $110K — Can Institutional Demand Avert Deeper Selloff?

Bitcoin retreated to near $115,000 following a pullback from its recent record high of $124,496, marking a 7.8% correction. The price decline occurred amid heightened macroeconomic concerns, particularly rising wholesale inflation data for July, which cast doubt on the likelihood of a Federal Reserve rate cut in September. Traders reacted with profit-taking, triggering over $530 million in liquidations across long positions in Bitcoin and Ethereum within 24 hours, according to CoinGlass data. Bitcoin long positions accounted for $124 million in forced sales, while Ether long liquidations reached $184 million. The CoinDesk 20 index, a broad measure of the crypto market, fell 1.2% as top cryptocurrencies followed the downward trend.

The pullback has drawn attention to key support levels for Bitcoin, with traders closely watching the 50-day and 100-day moving averages. The 50-day moving average currently sits around $115,875, and the 100-day moving average at $110,950. A failure to reclaim the 50-day level could signal further bearish pressure, while a rebound above this threshold would suggest continued bull market momentum. On-chain data shows bid liquidity stacking around the $112,000 range, with a notable $25 million band at $105,000 identified as potential “plunge protection” against deeper sell-offs. Analysts, including Keith Alan of Material Indicators, have noted that the current price action does not reflect bullish strength, as downward pressure remains “palpable.”

Bitcoin ETF inflows, which had previously acted as a stabilizing force, showed signs of cooling. For the week ending August 18, ETFs tracking Bitcoin and Ethereum recorded net inflows of $547 million and $2.9 billion, respectively, but Monday saw a net outflow of $121 million, according to Farside Investors. The largest ETF, BlackRock’s iShares Bitcoin Trust (IBIT), experienced its first outflow since August 5. Despite these shifts, Bitcoin ETF inflows remain a key indicator of institutional demand and could play a decisive role in whether the current consolidation phase resolves into renewed upward momentum or deeper consolidation.

On the derivatives front, Bitcoin’s funding rates have turned negative, signaling bearish sentiment among traders. Historically, such a shift has coincided with short-term market bottoms before sharp rebounds. Long-term holders, however, continue to accumulate Bitcoin, suggesting confidence in future price appreciation. On-chain analytics from Glassnode highlight a growing divergence between institutional demand and price action, as ETF inflows persist despite weakening on-chain signals like volume. The sustainability of this institutional demand and renewed buyer conviction will be critical in determining the next phase of Bitcoin’s price trajectory.

While short-term volatility persists, the broader outlook remains cautiously optimistic. The Federal Reserve’s upcoming policy decisions, including its annual Jackson Hole symposium, will be closely watched for hints of a rate-cutting cycle that could reinvigorate risk assets like Bitcoin. Analysts argue that the current correction is not a sign of a bear market but rather a “healthy reset” before further gains, provided institutional inflows continue and macroeconomic conditions align. If Bitcoin stabilizes above $110,000—a level that combines technical, on-chain, and historical support—further bullish momentum could materialize as the market absorbs recent selling pressure.

Source:

[1] crypto-market-today (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k)

[3] has-the-bitcoin-price-bull-market-topped (https://bitcoinmagazine.com/markets/has-the-bitcoin-price-bull-market-topped)