Bitcoin News Today: Bitcoin's Selling Pressure Exposes Fragile Price Foundation

Bitcoin’s recent price recovery has shown signs of stalling as on-chain data indicates broad distribution across holder cohorts and key technical resistance levels weigh on market sentiment. Following a brief rebound after Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole symposium, Bitcoin (BTC) reversed course, dropping to $110,600 by the following week. A bearish weekly engulfing candle highlighted the vulnerability in the current price structure, with all BTC wallet cohorts transitioning into distribution mode according to data from Glassnode. The 10–100 BTC cohort, in particular, has emerged as a primary source of selling pressure, flipping to net sellers after prices crossed $118,000.

The synchronized distribution behavior across different wallet sizes has raised concerns about Bitcoin’s short-term stability. Analyst Boris Vest noted that smaller holders (0–1 BTC) have steadily accumulated since the peak, while larger holders (1–10 BTC) resumed buying below $107,000. However, the 10–100 BTC group remains a key factor, as their accumulation or distribution activity around $105,000 could determine whether the price stabilizes or breaks into deeper correction territory. The realized price for the one to three-month UTXO age band currently stands at $111,900, indicating a concentration of short-term positioning near recent highs. By contrast, longer-term holders have significantly lower cost bases, with the three to six-month and six to twelve-month UTXO age bands anchored at $91,630 and $89,200, respectively.

With $105,000 emerging as a critical support level, market analysts warn that a break below this threshold could trigger further selling as recent buyers begin to capitulate. The lack of dense cost support between current levels and $90,000 could amplify downside momentum, potentially forcing prices toward the $92,000–$89,000 range. Historical seasonal patterns also suggest heightened volatility during the August to September period, a trend exacerbated by Asia’s “ghost month,” which runs from August 23 to September 21 in 2025. On average, Bitcoin has historically declined by 21.7% during this period, with some years recording drops exceeding 30%. If these patterns persist, a move toward the $105,000–$100,000 range remains a plausible scenario.

Adding to the bearish outlook is the growing sentiment of ETF fatigue, as traders begin to question whether the post-launch euphoria surrounding spot Bitcoin ETFs has peaked. Crypto trader Roman Trading highlighted structural risks in the current rally, noting that BTC/EUR has not reached a new all-time high since 2024, suggesting that recent price gains may be more attributable to a weakening U.S. dollar rather than organic demand. This sentiment has been reinforced by recent market activity, including a flash crash in which a whale liquidated 24,000 BTC, valued at over $2.7 billion, causing prices to drop from $114,000 to $110,000 within minutes. Such volatility underscores the fragility of the current price structure and raises questions about the sustainability of the ongoing bullish momentum.

The upcoming Jackson Hole speech by Jerome Powell on August 23 is expected to be a key macroeconomic event that could either stabilize or exacerbate Bitcoin’s price fluctuations. If Powell signals a September rate cut, liquidity-sensitive assets like Bitcoin may benefit in the short term. Conversely, if he emphasizes inflation control and delays rate cuts, the ongoing selloff could deepen. Additionally, subsequent data releases—including the PCE inflation report (August 29), the August jobs report (September 5), and the CPI data (September 11)—will play a crucial role in shaping market expectations and investor sentiment. These factors, combined with on-chain distribution patterns and seasonal volatility, suggest that the path of least resistance for Bitcoin may remain downward in the near term.

Source:

[1] Bitcoin Price Drops Below $112000 As Metaplanet ... (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)

[2] Bitcoin holders 'distribute' as $105K becomes BTC's last ... (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)

[3] Bitcoin Not Rising Quickly Enough? Analyst Says Early ... (https://finance.yahoo.com/news/bitcoin-not-rising-quickly-enough-203110676.html)

[4] BTC to USD: Bitcoin Price in US Dollar (https://www.coingecko.com/en/coins/bitcoin/usd)

[5] Will Bitcoin Price Crash to $50000 After This Friday? (https://www.bitget.com/news/detail/12560604922326)

[6] Will Bitcoin Price Crash to $50000 After This Friday? (https://www.mexc.com/news/will-bitcoin-price-crash-to-50000-after-this-friday/68007)