Bitcoin News Today: Bitcoin's Weak Hands Exit Stage Left as Bulls Wait for $117K Rebound

Bitcoin’s recent price movements have drawn significant attention from analysts and market participants, with the cryptocurrency falling below $110,000 but still maintaining a path toward higher levels. Onchain data indicates that the market is currently in a capitulation phase, with newer investors, who hold Bitcoin for less than a month, experiencing average unrealized losses of -3.50%. These investors are increasingly selling off their holdings, while more seasoned holders—those with positions of one to six months—remain profitable with unrealized gains of +4.50% [1]. Analyst CrazzyBlockk notes that this trend is indicative of a bullish structural development, as weaker hands are being flushed out, potentially building a stronger support base for a subsequent price move [1].

The broader market sentiment has also shifted in recent days, with Bitcoin futures open interest climbing to an all-time high of 762,700 BTC, a 13% increase from two weeks earlier [7]. Despite the recent price weakness, traders continue to engage with Bitcoin futures, suggesting sustained interest and speculative activity. However, the balance between long and short positions remains delicate, with put options currently trading at a 10% premium over calls, a sign of bearish sentiment. Analysts caution that this imbalance could lead to significant volatility should the price dip below $110,000, potentially triggering cascading liquidations [7].

Notably, the recent price correction was partially attributed to a large-scale sell-off by a 5-year dormant whale, which sold over 24,000 BTC in a single day. This event contributed to a $70 million liquidation of BTC longs and a sharp drop in open interest on Binance [2]. Onchain analyst Amr Taha noted that the market is structurally healthier after the removal of overleveraged buyers and the reset of open interest, but emphasized that further upside potential is contingent on Bitcoin reclaiming key price levels [1]. The next major area of liquidity lies around $117,000–$118,000, which could act as a price magnet if Bitcoin recovers [2].

Analysts are also closely watching Bitcoin’s position relative to key moving averages. The 20-week EMA currently sits at around $108,000, and a sustained move above this level would signal that the bull market remains intact [1]. A breakdown below this line, however, could lead to a deeper correction toward the 50-week EMA at $95,300, which has historically marked local bottoms during prior bull market pullbacks. On the other hand, a rebound from the 20-week EMA could rekindle the momentum toward $125,500 and, potentially, $150,000 by the end of 2025 [1].

In parallel with the price action in Bitcoin, a new Layer-2 project called Bitcoin Hyper (HYPER) has attracted attention with its presale nearing $12 million raised [4]. Built on the Solana Virtual Machine (SVM), the project aims to address Bitcoin’s scalability limitations while maintaining the security of the Bitcoin blockchain. Whale activity has surged in the past week, with over $52,000 in single-day purchases [4]. Analysts suggest that Bitcoin Hyper could benefit from the broader altcoin season, with its unique value proposition potentially positioning it as a high-growth asset in the coming months [6].

Bitcoin’s recent performance highlights the complexity of the cryptocurrency market, where technical indicators, onchain data, and macroeconomic factors all play a role in shaping price action. While the current correction has raised concerns, many analysts remain cautiously optimistic about Bitcoin’s long-term trajectory, particularly if spot ETF inflows resume and the market stabilizes. As of now, the focus remains on key support and resistance levels, with a rebound toward $120,000 seen as a potential next step in the ongoing bullish narrative [7].

Source:

[1] Was $124K the top? Bitcoin's price peak signals tell a ... (https://cointelegraph.com/news/was-124k-the-top-bitcoin-price-peak-signals-different-story)

[2] Panicked Traders Brace For $100000 Bitcoin And $4000 ... (https://www.forbes.com/sites/digital-assets/2025/08/26/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[3] Bitcoin drops under $109K — How low can BTC price go ... (https://cointelegraph.com/news/bitcoin-drops-under-109k-how-low-can-btc-price-go-next)

[4] Bitcoin Hyper Presale Nears $12M Raised as Whales Buy ... (https://www.mitrade.com/insights/news/live-news/article-3-1066497-20250825)

[5] ICO Drops - Calendar of active and upcoming ICO & IEO ... (https://icodrops.com/)

[6] Bitcoin Hyper Layer 2 ICO Soars Past $11.8M - Next 100x ... (https://en.cryptonomist.ch/2025/08/24/bitcoin-hyper-layer-2-ico-soars-past-11-5m-next-100x-crypto/)

[7] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives)