Bitcoin News Today: Bitcoin's Bull Trap Unfolds as Momentum Fades and Capital Flees
- Bitcoin's price fell to a seven-week low of $108,700 after peaking at $124,000, with analysts warning of a potential bull trap as RSI divergence signals weakening momentum. - Key support levels at $107,000 and $100,000 (aligned with the 200-day moving average) face retests, while $117,000 resistance remains critical for short-term reversal hopes. - Over $1B in Bitcoin ETF outflows and a $11.4B institutional shift to Ethereum highlight capital reallocation, compounding pressure amid Fed rate uncertainty a
Bitcoin's price has recently come under pressure, with technical indicators suggesting the possibility of further declines. After reaching a record high of over $124,000 on August 14, the cryptocurrency has since retreated, dropping to as low as $108,700—a seven-week low. This downward movement has led analysts to speculate that the market may be witnessing the formation of a bull trap, where prices rise before sharply reversing, potentially leaving investors with unexpected losses.
A key technical signal of concern is the divergence between Bitcoin's price and the relative strength index (RSI), where the price reached a higher level while the RSI did not, suggesting waning buying momentum. Analysts have identified critical support levels at $107,000 and $100,000, with further declines potentially leading to a retest of these areas. The $100,000 level is particularly significant as it aligns with the 200-day moving average, a key technical reference for many traders.
In addition to technical indicators, on-chain data also reflects a challenging market environment. Bitcoin ETFs experienced over $1 billion in outflows last week, marking the largest outflow since March. This trend coincides with a shift in investor flows, with a notable portion of capital moving into Ethereum-based products. In fact, one major crypto whale reportedly moved $11.4 billion from Bitcoin to Ethereum over the weekend, signaling a strategic reallocation by institutional players.
Market participants are also keeping a close eye on Bitcoin's behavior around key resistance levels, such as $117,000 and $123,000. If Bitcoin manages to reclaim these areas, it could signal a potential reversal in the short to medium term. However, a failure to break through the $117,000 resistance level could result in renewed selling pressure and push the price back toward the $100,000 support zone.
The broader market context also plays a role in Bitcoin's recent volatility. Federal Reserve Chair Jerome Powell's recent comments suggesting a potential interest rate cut have created uncertainty among investors. Additionally, macroeconomic factors such as liquidity trends and corporate treasury activities have added to the mixed signals. While Bitcoin has seen a rise in adoption as a corporate treasury asset—especially among non-crypto firms—the recent outflows from ETFs and shifting investor sentiment suggest that the market is still in a period of consolidation.
Looking ahead, Bitcoin is expected to remain in a key inflection point , with analysts warning that a breakdown below $110,000 could signal a more prolonged bearish trend. If the price continues to weaken, it may test the $105,000 to $100,000 range, levels that have not been seen since late July. Given the current market dynamics and technical conditions, investors should remain cautious, particularly as the asset's volatility continues to pose risks for both short-term traders and long-term holders.
Source:

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP News Today: XRP's Triangle Break Could Signal Major Shift in Crypto Power Dynamics
- XRP nears critical triangle breakout point with $3.10 resistance and $2.85 support defining potential 34% upward move to $4 or bearish drop to $2.74. - Technical indicators show neutral RSI (49) and declining volume, while regulatory clarity post-SEC settlement and Ripple's RLUSD expansion boost institutional adoption. - XRP's $168B market cap and 59% circulating supply highlight strong liquidity, but risks include regulatory uncertainty and CBDC competition threatening adoption.

Chinese Money Laundering Networks Funnel $312B for Cartels and Criminals
- FinCEN reveals Chinese money laundering networks (CMLNs) laundered $312B from 2020-2024, aiding Mexican cartels in drug trafficking and other crimes like human trafficking and fraud. - CMLNs act as intermediaries, enabling cartels to bypass currency controls while helping Chinese nationals circumvent foreign exchange limits through shell companies and money mules. - Networks also facilitate real estate purchases, healthcare fraud, and elder abuse, with $53.7B linked to property transactions involving she

Assessing Zcash Foundation's Governance and Transparency: A Framework for Institutional Credibility in Privacy-Driven Crypto Projects
- Zcash Foundation’s Q1 2025 report highlights financial transparency and treasury strategies amid market volatility. - Governance remains centralized despite decentralization efforts, with 12% block rewards allocated to a "lockbox" and 8% to grants. - Zero-knowledge (ZK) proof systems enable privacy but hinder auditability, creating challenges for institutional adoption and regulatory compliance. - A May 2025 Hacken audit identified security flaws in Zcash’s web3 wallet, underscoring the need for proactiv

Zhou Xiaochuan Warns Against Stablecoin Risks
Trending news
MoreCrypto prices
More








