Bitcoin News Today: Retail Buyers Prop Up Bitcoin Amid Whale-Driven Sell-Off

Bitcoin (BTC) climbed to $111,000 as the U.S. Dollar Index (DXY) fell to 98.16, signaling potential shifts in market dynamics and investor sentiment. While the price of Bitcoin remains within a short-term downtrend, retail traders have been net buyers during recent price dips, providing some support to the cryptocurrency. Data from Hyblock indicates that retail traders on platforms such as Binance and Coinbase have net purchased over $101 million in Bitcoin spot markets, whereas larger institutional and whale-sized investors have been net sellers. The selling pressure from these larger players has offset the buying interest from smaller traders, contributing to the ongoing consolidation phase [1].

The price behavior of Bitcoin has been closely linked to broader macroeconomic trends, with the U.S. Dollar Index playing a significant role. The DXY dropped below the 98 level, reaching 98.16, which historically has correlated with a relative strengthening of Bitcoin against the dollar. This inverse relationship is often observed when the U.S. dollar loses strength, making dollar-denominated assets like Bitcoin more attractive to global investors [3]. However, despite this potential tailwind, Bitcoin remains vulnerable to further corrections as long as larger investors continue to offload their positions.

The price action of Bitcoin over the past week has shown some signs of stabilization. After a sharp sell-off that pushed the price down to $108,665, Bitcoin reclaimed the $111,000 level, offering a short-term floor to the downward movement. Liquidation heatmaps from Hyblock highlight key support clusters at $111,000 to $110,000, with another significant cluster near $104,000. While a breakdown to the $104,000 level is considered unlikely, the continued dominance of larger-scale selling remains a key concern for bulls [1]. Analysts warn that unless the net selling pressure from whales and institutional investors diminishes, Bitcoin could face renewed downward momentum.

Investor sentiment also appears to be shifting away from Bitcoin toward Ethereum (ETH), with ETH-linked products attracting substantial inflows. In contrast, Bitcoin ETFs have seen significant outflows, with over $1 billion in net redemptions recorded last week [2]. This capital rotation reflects growing confidence in Ethereum's fundamentals, particularly with the recent passage of the GENIUS Act, which provides regulatory clarity for stablecoins and digital tokens. Analysts attribute this trend to Ethereum’s growing adoption in decentralized finance (DeFi) and real-world asset tokenization, which are enhancing its role in the broader blockchain ecosystem [2].

The current market structure for Bitcoin suggests a potential period of consolidation between $110,000 and $120,000, or a breakdown toward psychological levels around $105,000 to $100,000, depending on the strength of buying interest and the pace of selling. While the anchored cumulative volume delta (CVD) shows a slight positive bias from retail traders, the overall market structure remains vulnerable to a breakdown if larger players continue to dominate the sell side. This scenario would require a shift in investor behavior, particularly from institutional actors, to allow Bitcoin to regain upward momentum [1].

The broader cryptocurrency market has also experienced mixed performance, with Ethereum leading the rally and outperforming Bitcoin in recent months. Ether surged to a new all-time high of $4,956 before retreating slightly, indicating strong but not yet sustained buying momentum. Other major cryptocurrencies, including BNB and Solana, have shown resilience, with BNB reaching fresh highs and Solana forming bullish chart patterns. However, Bitcoin’s relative weakness suggests that it is at a critical inflection point, where the outcome will depend on whether smaller investors can sustain the price or whether larger-scale selling intensifies [2].

Source:

[1] Bitcoin trend reversal to $118K or another drop to $105K (https://cointelegraph.com/news/bitcoin-trend-reversal-to-118k-or-another-drop-to-105k-which-comes-first)

[2] Ethereum rally continues as recent crypto softness puts bitcoin price at inflection point (https://finance.yahoo.com/news/ethereum-rally-continues-as-recent-crypto-softness-puts-bitcoin-price-at-inflection-point-183003036.html)

[3] SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK (https://cointelegraph.com/news/price-predictions-8-25-spx-dxy-btc-eth-xrp-bnb-sol-doge-ada-link)