Bitcoin News Today: Institutional Whales Double Down as Bitcoin Tests Key Support Zones

Bitcoin’s price has drawn attention to a critical support zone between $100,000 and $107,000, where the Short-Term Holder Realized Price (STH Realized Price) aligns with the 200-day Simple Moving Average (SMA 200D). According to CryptoQuant analyst Axel Adler Jr., this area represents a key level where stabilization and potential bounce scenarios are likely [1]. The convergence of these technical indicators is often seen as a strong signal for market psychology and price behavior, especially in the context of a correction that has seen Bitcoin fall approximately 8% from its recent peak [2].

Beneath this primary support level lies a secondary defense zone between $92,000 and $93,000. This area is particularly significant as it reflects the cost basis of short-term investors who have held Bitcoin for three to six months. Should Bitcoin break down through the $100,000–$107,000 range, the $92,000–$93,000 level would become a critical second line of defense. Analysts have noted that this secondary level could prevent further downward momentum if it holds during a potential follow-through sell-off [1].

Institutional buying activity has been observed during the recent pullback, with on-chain data revealing that whales purchased 200 BTC, valued at approximately $23 million, during the correction. This suggests that large players remain confident in Bitcoin’s long-term potential and are accumulating at lower prices. Furthermore, Glassnode data indicates that supply held by First Buyers is approaching 5 million BTC, a sign that long-term holders and large investors are continuing to dollar-cost average into the decline [2].

Technical indicators also point to potential stabilization. The STH Realized Price currently stands at $106,800, forming a dense demand zone between $107,000 and $110,000. Analysts have noted that this area could serve as a bounce zone if the correction deepens. Additionally, four key reversal conditions appear to be forming: a positive bid-ask ratio, a True Retail Accounts Long percentage above 60%, a potential slippage spike, and the price reclamation of the 50 EMA. Meeting these conditions could signal the end of the current correction phase [2].

The broader cryptocurrency market has also shown signs of recovery, with the total market capitalization rising to $3.96 trillion in the 24 hours following the pullback. However, the market remains vulnerable to external shocks, particularly with the Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech expected to drive additional volatility. The CME Fed Watch tool currently forecasts an 82% chance of a September rate cut, though this probability has been declining in recent days [2].

Market participants are also monitoring the 111-day Simple Moving Average at $109,600, which represents another key level of potential resistance or support. If Bitcoin manages to stabilize near the STH Realized Price and 200-day SMA alignment, it could signal a shift in sentiment from bearish to neutral or even bullish. However, any further breakdown below the identified support zones could trigger more aggressive selling and amplify short-term volatility [1].

The recent liquidation of $354 million in crypto positions within a single hour highlights the heightened risk environment in the market. Such events often accelerate price swings and increase slippage for major pairs like Bitcoin and Ethereum [3]. Traders are advised to closely monitor funding rates and liquidity conditions, as large liquidation events can exacerbate market imbalances and lead to unpredictable price movements [3].

Source:

[1] Analyst: Bitcoin Key Support Level in $100000 to $107000 Range (https://www.weex.com/news/detail/analyst-bitcoin-key-support-level-in-100000-to-107000-range-148314)

[2] Bitcoin (BTC) Price Prediction: Institutional Buyers Load Up on Dip While Markets Await Jackson Hole Fed Decision (https://coincentral.com/bitcoin-btc-price-prediction-institutional-buyers-load-up-on-dip-while-markets-await-jackson-hole-fed-decision/)

[3] Crypto Market Alert: $354M Liquidated in 60 Minutes (https://blockchain.news/flashnews/crypto-market-alert-354m-liquidated-in-60-minutes-watch-volatility-and-perp-risk-for-btc-and-eth)