Bitcoin Plunges by $109K: Bear Market Indicators Clash with Whale Buying

Bitcoin has slipped below $109,000, reigniting discussions among market experts and investors about where the cryptocurrency is headed next. Recent figures show a blend of negative technical indicators and renewed buying activity, as participants contend with a turbulent market influenced by broader economic trends and institutional behavior. This downturn has prompted analysis of past trends, liquidity movements, and the likelihood of a rebound in the near future.

Technical indicators point to a pivotal moment for

. The cryptocurrency has fallen beneath important moving averages, including the 50-day and 100-day, marking the first occurrence since April 2025 Bitcoin (BTC) Price: Dip Buyers Emerge but Charts Point to … [ 3 ]. This drop has heightened worries about a potential “head and shoulders” formation, which often signals further declines Bitcoin Now – Pattern Confirms Massive Price Drop for BTC in 2025 [ 1 ]. Analysts from platforms like BTCC caution that unless buyers step in forcefully, Bitcoin could experience additional downward momentum. At the same time, liquidity studies highlight a significant price zone at $107,000, where clusters of orders and previous support levels intersect Bitcoin (BTC) Price: Dip Buyers Emerge but Charts Point to … [ 3 ].

Looking at historical trends provides more context for the current decline. September has often been a challenging month for Bitcoin, with losses recorded in eight out of the last twelve years, averaging a -3.77% return Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. This year’s drop fits that pattern, as Bitcoin ended August down 5% for the month. Factors such as institutional portfolio adjustments, tax-loss selling, and reduced positions after summer rallies are frequently mentioned as reasons. Still, some analysts believe 2025 could break from this tradition, referencing 2017 when a September recovery led to a strong rally by year’s end Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ].

Current market activity shows a struggle between short-term selling and long-term accumulation. Large holders—wallets with more than 100 BTC—have reached a new high of 19,130, indicating strategic accumulation by major players Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. This stands in contrast to the $751 million withdrawn from ETFs in August, reflecting caution among institutional investors with shorter outlooks Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. Meanwhile, retail investors have increased leveraged long bets during the downturn, though overall market liquidity remains tight Bitcoin (BTC) Price: Dip Buyers Emerge but Charts Point to … [ 3 ].

Broader economic factors, such as Federal Reserve decisions and the strength of the U.S. dollar, are also shaping Bitcoin’s path. The dollar’s correlation with Bitcoin over the past year has dropped to -0.25, the lowest in two years Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. Some analysts believe that expected Fed rate cuts later this year could boost liquidity for risk assets, potentially lifting both Bitcoin and other cryptocurrencies. “Two rate cuts could send trillions into crypto,” commented analyst Ash Crypto, who anticipates a sharp rally Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. However, cautious statements from Fed Chair Jerome Powell following the September meeting have dampened immediate enthusiasm Sudden $200 Billion Crypto Sell-Off Sparks Fresh … [ 5 ].

Conflicting outlooks highlight the prevailing uncertainty. Some expect Bitcoin to find support near $100,000, while others, including Fundstrat’s Tom Lee, foresee a rebound to $120,000 by September and possibly $200,000 by year’s end Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 2 ]. This optimistic scenario depends on changes in Fed policy, continued accumulation by large holders, and a repeat of 2017’s market behavior. On the other hand, some warn of a deeper pullback, with crucial support between $80,000 and $82,000 potentially serving as a safety net Bitcoin Price Drop April 2025: Fears, Floors, and a Shocking New … [ 4 ].

The current market climate is marked by a fragile balance between caution and opportunity. While macroeconomic headwinds and regulatory questions remain, historical trends and actions by major holders suggest Bitcoin may be nearing a bottom. As the market moves through this critical phase, the interaction of technical signals, institutional moves, and economic developments will likely determine whether this downturn is a short-term pause or the start of a more prolonged decline.