Bitcoin News Today: Investor Shifts and Market Forces Drive Bitcoin's Post-Peak Slide

Bitcoin prices have retreated below $108,000 as of August 29, marking a significant correction from the all-time high of nearly $124,400 reached on August 13. The digital asset has lost over 13% from its peak, with the decline attributed to a combination of market mechanics and investor behavior. According to Coinbase data via TradingView, Bitcoin fell to as low as $107,500 around 5 p.m. EST, representing a notable pullback from its recent highs. Analysts such as Mike Cahill of Douro Labs and Doug Colkitt of Fogo have described the movement as a natural retracement in a 24/7 trading environment. Cahill noted that the decline was driven by factors including profit-taking by long-term funds, elevated funding costs in derivatives markets, and thinner liquidity in August. Joe DiPasquale of BitBull Capital added that macroeconomic uncertainty and a slowdown in ETF inflows have also contributed to the downward pressure on Bitcoin’s price. The correction is also being viewed as a shift in investor sentiment, with some capital moving from Bitcoin to alternative cryptocurrencies such as Ethereum. Greg Magadini of Amberdata highlighted that Ethereum is benefiting from its role as the “web3/tech play” in the crypto space, with enthusiasm for decentralized finance (DeFi) and stablecoins driving interest in ETH. He also pointed to potential developments in October, when staking rewards for Ethereum ETFs could begin, possibly leading to more inflows into ETH-based products. Tom Bruni of Stocktwits emphasized that Bitcoin’s dominance in the crypto market has dropped from 66% to 57% over the past two months, as investors have shifted money into smaller-cap assets. He also identified $100,000 as a key support level, where the 200-day moving average and previous breakout levels intersect. A failure to hold above $114,000 could trigger a deeper correction, according to traders and analysts. Bitcoin must close the week above this level to avoid an “ugly” correction, as highlighted by trader Sam Price and analyst Rekt Capital. A bear flag pattern observed on the four-hour chart suggests further downward movement if the price continues below $112,000. Liquidation data has shown significant losses across the crypto market, with over $535 million in forced closures reported, including $446 million in long positions. The selloff has also impacted other major cryptocurrencies, with Ethereum dropping nearly 5% and XRP falling 6%. Blockchain data reveals that miners have sold nearly $500 million worth of Bitcoin between August 11 and August 23, exacerbating short-term selling pressure. Despite the current decline, institutional investors remain bullish on Bitcoin’s long-term potential. JPMorgan analysts argue that BTC should trade at $126,000, citing reduced volatility and increased institutional adoption. Bitwise Asset Management has projected Bitcoin could reach $1.3 million by 2035, assuming a 28.3% compound annual growth rate. However, technical indicators such as the MACD histogram show weakening momentum, while the RSI remains in neutral territory. Market volatility was further exacerbated by a 20-minute outage on Binance Futures, which temporarily froze leveraged trading positions and contributed to panic selling near the $110,000 level. Binance has since restored services and reassured users of fund safety, but the incident highlights the fragility of the market during periods of intense price movement. Bitcoin’s current price action is being closely watched within a rising wedge pattern, with support at $107,000 and resistance near $116,000. A break below the support level could lead to a sharp decline toward $103,991, while a breakout above resistance could push the price toward $120,000–$122,000. Analysts remain cautious but optimistic, with many viewing the current pullback as a consolidation phase ahead of the next leg higher. The broader market is also anticipating macroeconomic developments, particularly the U.S. Federal Reserve’s policy decisions in September, which could influence risk appetite and capital flows into crypto assets.

Source:

[1] Forbes - Bitcoin Prices Have Retreated Below 108,000 After Peaking Mid-Month (https://www.forbes.com/sites/digital-assets/2025/08/29/bitcoin-prices-have-retreated-below-108000-after-peaking-mid-month/)

[2] Cointelegraph - Bitcoin Traders: BTC Must Close Week Above 114K to Avoid 'Ugly' Correction (https://cointelegraph.com/news/bitcoin-traders-btc-must-close-week-above-114k-ugly-correction)

[3] Trading News - Bitcoin Price Falls to 108K After 124K Peak - Trading News (https://www.tradingnews.com/news/bitcoin-price-falls-to-108k-usd-as-535m-usd)