As of August 29th, Bitcoin’s value has dipped below $108,000, marking a notable correction from its recent high. The price of this digital asset has decreased by more than 13% since hitting almost $124,400 on August 13th. This downturn appears to be driven by a blend of standard market movements and changes in how investors are behaving.
Data from Coinbase, analyzed through TradingView, shows Bitcoin dropping to around $107,500 around 5 PM EST. Several analysts are weighing in on the price action. Mike Cahill from Douro Labs views the drop as a typical retracement that happens in the always-on cryptocurrency market. Doug Colkitt of Fogo agrees, explaining that factors such as long-term funds cashing in profits, costly derivative funding, and the traditionally lower trading volumes seen in August have all played a role.
Joe DiPasquale from BitBull Capital adds that broader economic uncertainties and a slowing pace of investment into Bitcoin ETFs are adding to the negative pressure on the price. Additionally, some investors are shifting funds from Bitcoin into other cryptocurrencies, particularly Ethereum.
Greg Magadini of Amberdata points out that Ethereum is gaining traction due to its position as the “web3/tech play” within the crypto world. Interest in decentralized finance (DeFi) and stablecoins are fueling demand for ETH. The potential start of staking rewards for Ethereum ETFs in October could also attract more investment into ETH-related products.
Tom Bruni of Stocktwits notes that Bitcoin’s dominance in the overall crypto market has slipped from 66% to 57% over the last couple of months, indicating a move towards smaller, alternative digital currencies. He identifies $100,000 as a critical support level where the 200-day moving average coincides with previous breakout points. According to analysts and traders, failing to maintain a price above $114,000 could signal a more significant price correction. Trader Sam Price and analyst Rekt Capital suggest Bitcoin needs to end the week above this level to avoid a substantial decline.
A “bear flag” pattern appearing on the four-hour chart could mean further downward pressure if the price stays below $112,000. Recent liquidation data reveals over $535 million in total forced position closures across the crypto market, with $446 million of that in long positions. This widespread selling has affected other major cryptocurrencies, including Ethereum, which has fallen almost 5%, and XRP, down 6%.
On-chain data indicates that Bitcoin miners have sold nearly $500 million worth of Bitcoin between August 11th and 23rd, adding to the short-term selling pressure. Despite the current pullback, institutional investors remain largely optimistic about Bitcoin’s long-term prospects. JPMorgan analysts, for instance, believe BTC should be valued at $126,000, citing reduced volatility and increasing institutional adoption. Bitwise Asset Management goes even further, projecting Bitcoin could reach $1.3 million by 2035, assuming an annual growth rate of 28.3%.
However, technical indicators such as the MACD histogram suggest weakening momentum, and the RSI remains neutral. Market volatility was compounded by a temporary 20-minute outage on Binance Futures, which halted leveraged trading and fueled panic selling near the $110,000 level. While Binance has since restored services and assured users of fund safety, the event highlights the market’s vulnerability during periods of high volatility.
Bitcoin’s price is currently being watched closely within a rising wedge pattern, with support around $107,000 and resistance near $116,000. A breach of the support level could lead to a rapid decline toward $103,991, while breaking above resistance might push the price toward the $120,000-$122,000 range.
Overall, analysts are taking a cautiously optimistic approach, often seeing the current pullback as a period of consolidation before the next upward move. The broader market is also awaiting important economic news, particularly the U.S. Federal Reserve’s policy decisions expected in September, which could impact 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)