Whales Sell, Bulls Waver as Bitcoin Tests $110k Support

Bitcoin fell below $113,000 this week, signaling growing uncertainty among traders and analysts as the cryptocurrency faces key resistance levels and evolving macroeconomic conditions. The price drop continued a downward trend that saw BTC decline over 6% in the previous month after hitting a record high of $124,000 on August 14 [1]. As of early September, BTC/USD hovered around $111,000, with concerns mounting over a potential 10% correction or worse [1]. Analysts and on-chain observers have pointed to several factors driving the current bearish sentiment, including shifting institutional flows, whale activity, and macroeconomic expectations around U.S. Federal Reserve policy [1].

On-chain data reveals that large Bitcoin holders, or whales, have been reducing their exposure over the past month. Whale reserves have fallen by more than 100,000 BTC since mid-August, the largest decline since 2022 and a sign of heightened risk aversion among major investors [1]. The drawdown has been accompanied by increased selling pressure on major exchanges, with liquidity weakening across Bitcoin futures markets. On Binance, the Taker Buy/Sell Ratio, a key indicator of market sentiment, is showing bearish divergence—making lower lows while Bitcoin’s price remains elevated—raising concerns about the sustainability of current price levels [1].

Meanwhile, institutional flows suggest a re-rotation into Bitcoin after a period of capital shifting to Ether (ETH). While U.S. spot ETH ETFs experienced record outflows of $787.7 million in the previous week, Bitcoin ETPs saw inflows of $246.4 million, highlighting renewed interest in BTC as a store of value [1]. This trend aligns with broader market dynamics, as U.S. macroeconomic data continues to shape expectations for a Federal Reserve rate cut in September. The Producer Price Index (PPI) and Consumer Price Index (CPI) data due in late September will be critical in determining the timing and magnitude of any rate cut, though markets are already pricing in a 25-basis-point reduction [1]. Analysts warn, however, that even a cut may not be enough to reverse Bitcoin’s current bearish trajectory without broader economic improvements.

Price targets and potential capitulation levels are being closely monitored by traders. Key levels of support include $106,700 and $100,000, with some analysts forecasting a 30% correction from recent highs if bearish conditions persist [1]. Such a move would bring BTC/USD down to around $87,000. The Fibonacci retracement levels and on-chain liquidity data point to growing vulnerability at these thresholds, as market participants brace for a possible retest of 2022 bear market conditions [1]. The coming weeks will be crucial for determining whether Bitcoin can stabilize above $110,000 or if it will enter a deeper correction phase.

As global regulators continue to grapple with the evolving role of stablecoins and digital currencies, China's potential shift in its stance toward crypto could add another layer of complexity to the market dynamics. With Hong Kong positioned as a testing ground for digital yuan stablecoins, Beijing is exploring ways to assert influence in the global crypto arena without undermining its strict domestic controls [4]. The geopolitical implications of this strategy could reshape cross-border trade and payments, particularly as U.S. and Chinese officials seek to redefine economic alliances amid growing tensions. For Bitcoin and other cryptocurrencies, the coming months may bring both challenges and opportunities as the world navigates the intersection of digital finance and global power dynamics.

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[1] Here's 5 Things Bitcoin Traders Are Talking About This Week (https://cointelegraph.com/news/btc-dip-predictions-fall-below-90k-5-things-to-know-in-bitcoin-this-week)

[2] Bitcoin price today: rangebound at $112k despite rising ... (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-subdued-near-111k-despite-rising-fed-cut-bets-4228121)

[3] Bitcoin Price History (2009 to 2025) - Data & Analysis (https://www.demandsage.com/bitcoin-price-history/)

[4] Eric Trump Hails China As A 'Hell Of A Power' In Crypto, But ... (https://finance.yahoo.com/news/eric-trump-hails-china-hell-202707548.html)

[5] Wait for Stablecoins to Whip Up US-China Rivalry (https://www.bloomberg.com/opinion/articles/2025-09-07/stablecoins-are-set-to-whip-up-us-china-geopolitical-rivalry)