Bitcoin News Today: Whales and Retail Traders Clash as Bitcoin Grapples with $105K Fate

Bitcoin fell below $109,000 on August 29, 2025, extending a broader selloff in the cryptocurrency market amid heightened bearish sentiment. The price decline continued despite some retail buying activity and stable inflows into Bitcoin spot exchange-traded funds (ETFs. The cryptocurrency remains under pressure ahead of the Federal Reserve’s potential September interest rate decision, with traders closely monitoring price levels near key technical indicators such as the 100-day and 200-day exponential moving averages (EMAs). At the same time, Ethereum, the second-largest cryptocurrency by market capitalization, saw a 5.17% drop in a 24-hour period, falling to around $4,318.49 as profit-taking and reduced ETF inflows contributed to the decline.

Retail traders have been net buyers of Bitcoin during the recent downturn, particularly in spot and perpetual futures markets on exchanges like Binance and Coinbase. However, larger traders—often categorized as "whales" and institutional investors—have remained net sellers, contributing to the persistent downward trend. Over the past few days, cumulative volume delta (CVD) data shows that retail activity has been concentrated in the $105,000 to $118,000 range, while larger selling pressure continues to dominate at higher price levels. This dynamic has led to a tug-of-war between short-term bullish sentiment and a broader bearish trendline.

Ethereum has also seen mixed movements. While its price dipped significantly from an all-time high of over $4,900 reached on Sunday, some Ethereum-based infrastructure and tokenized asset developments have continued to attract institutional interest. The blockchain’s growing ecosystem, particularly in stablecoin issuance and real-world asset tokenization, has reinforced its role as a leading platform for decentralized finance. However, this has also led to a shift in capital flows away from Bitcoin, with some large investors selling Bitcoin to buy Ethereum. This reallocation of assets has further pressured Bitcoin’s price and raised questions about whether the market is entering a new phase of altcoin dominance.

Market data and liquidation metrics highlight the fragility of the current price environment. Over $410 million in liquidations occurred in the past 24 hours, with long positions accounting for the majority of the losses. Bitcoin’s price has slipped below the $110,000 threshold and the 100-day EMA, increasing the likelihood of a further pullback toward the $105,000 level. The Relative Strength Index (RSI) has approached oversold territory, suggesting a potential rebound could be on the horizon, but only if buying pressure intensifies and large-scale selling subsides.

Looking ahead, traders and analysts are closely watching whether Bitcoin can retest the $111,000 to $110,000 range, a key support level identified in recent liquidation heatmaps. Meanwhile, Ethereum faces a critical juncture as its price holds above the $4,300 threshold, with technical indicators suggesting further downside potential unless bullish momentum improves. The broader cryptocurrency market remains highly sensitive to macroeconomic developments, particularly the upcoming release of personal consumption expenditure (PCE) data, which could influence the timing and magnitude of the Fed’s next rate cut. Investors are advised to remain cautious, given the current volatility and the divergence in sentiment among different investor cohorts.

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] Bitcoin Dips Under $110K, Ethereum Leads Losses As Traders Eye PCE Data for Fed Rate Cut (https://stocktwits.com/news-articles/markets/cryptocurrency/btc-dips-under-110k-eth-leads-losses-as-traders-eye-pce-data-for-fed-rate-cut/chtTXpCRdN3) [3] 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) [4] Bitcoin Dips Below Key EMA, Ethereum, XRP Face Pressure (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-sell-off-sends-jitters-across-the-market-ethereum-xrp-wobble-202508291200)