Bitcoin plummeted to its lowest points since July 8 after Wall Street commenced trading on Friday, with prices decreasing and traders rushing to reevaluate their short-term strategies.
As reported by CoinGlass, 24-hour crypto liquidations approached $540 million as selling pressure mounted on significant exchanges.
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Whales And Exchange Distribution Strain
According to insights from market analysts, considerable selling by major holders contributed to the decline. Distribution trends on Binance were identified by traders as a crucial factor that exacerbated losses.
Bitcoin fell by nearly 5% over the day, with several large accounts associated with the surge of sales that triggered stop orders and rapid exits.
Prominent trader Daan Crypto Trades highlighted a “key reversal zone” at recent ranges and consolidation levels.
Some analysts had similar price benchmarks on their radar, observing that Bitcoin did not manage to convert $112,000 into a support level. Other market participants indicated that $114,000 represents a significant weekly closing threshold for bulls.
Bullish RSI Divergence Maintains A Glimmer Of Optimism
Technical analysts noted a positive signal. As per crypto commentator Javon Marks, the four-hour chart still displays a bullish RSI divergence — a scenario where the RSI records higher lows while the price marks lower lows. This setup may indicate a potential early turnaround.
$BTC Promising area to keep monitoring. Right at the top of the previous range & consolidation area. https://t.co/WEaG2IF6nV pic.twitter.com/Y7RftSqDio
— Daan Crypto Trades (@DaanCrypto) August 29, 2025
Marks opined that Bitcoin might be able to recover. He proposed a potential rise back toward $123,000, which would signify approximately a +14% increase from current price levels. This estimation is optimistic and relies on momentum shifting swiftly in favor of buyers.
Macro Data, Seasonal Weakness Present Challenges
Seasonal trends and macroeconomic indicators exerted additional pressure. Historically, September has been one of Bitcoin’s weaker months, and investors were closely monitoring US inflation figures.
The Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures index, aligned with expectations and indicated signs of a rebound in inflation.
Nevertheless, the CME Group’s FedWatch Tool illustrated that markets are anticipating rate cuts in September, a factor that could benefit risk assets like crypto if it materializes.
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Range Bound For Now, Traders Monitor $112,000–$114,000
Reports indicate that traders are concentrating on a limited range of price markers. Should Bitcoin reclaim $112,000 and maintain a weekly close above $114,000, bulls would find some breathing space.
If those levels do not hold, further declines are likely, and short-term traders might confront additional liquidations.
At this moment, the market appears constricted. Some technical indicators hint at a possible rebound, but macro data and significant sellers are keeping the sentiment cautious.
Traders and investors are closely observing both price movements and economic information as the US approaches crucial data releases and the Fed decision timeline on Sept. 17.
Featured image from Unsplash, chart from TradingView