Bitcoin Holds $109K Amid Whale Rotation and Rising Liquidation Risks
Bitcoin is still above the psychologically crucial $109,000 threshold, and it has gained 1.8% in the last 24 hours, even though investors
Quick overview
- Bitcoin remains above the critical $109,000 level, gaining 1.8% in the last 24 hours despite institutional selling pressures.
- A significant sell-off by long-term holders, including a $4 billion sale to Ethereum, raises concerns about Bitcoin's market stability.
- The futures market shows caution with a 7% annualized premium, while put options indicate negative sentiment among traders.
- Bitcoin's support zone at $107,000-$108,900 is crucial; failure to maintain this level could lead to a rapid decline towards $90,000-$95,000.
Bitcoin BTC/USD is still above the psychologically crucial $109,000 threshold, and it has gained 1.8% in the last 24 hours, even though institutional selling and derivative market concerns are making things harder for it. The main cryptocurrency’s ability to hold this important support level as the market changes will probably decide where it goes in September.
Institutional Rotation Into Ethereum Creates Headwinds
The biggest thing that has affected Bitcoin’s price is the huge amount of money that long-term holders and institutional players have moved about. A well-known Bitcoin whale, who had held onto their assets for more than five years, recently sold $4 billion worth of Bitcoin using the decentralized exchange Hyperliquid and moved the money to Ethereum. This action is part of a bigger trend in which long-term investors sold almost 97,000 BTC on Friday alone, the most they had ever sold in one day in 2025.
The selling pressure from these diamond-handed investors could mean that the market is about to change, and some people are starting to wonder if the current bull run is about to reach its top. The $127 million that US spot Bitcoin ETFs lost on Friday only added to worries about how confident institutions are in Bitcoin’s short-term future.
BTC Derivatives Markets Flash Warning Signs
The futures market for Bitcoin is uneven, but it is becoming more cautious. The monthly futures annualized premium is at 7%, which is still in the neutral 5–10% area, but it doesn’t exhibit any symptoms of the bullishness that led to the run to $117,000 in late August. The options market is more worrisome because put options are trading at a 7% premium to call options on Deribit. This is a sign of adverse sentiment.
The concentration of leveraged long holdings at risk is probably the most worrying thing. CoinGlass says that if the price of Bitcoin drops below $107,000, about $390 million in bullish leveraged positions will have to be sold. This might set off a chain reaction in which a violation of support could cause forced selling, which would make any downward momentum much stronger.
BTC/USD Technical Analysis Points to Critical Junction
Bitcoin’s price behavior following Friday’s drop from $112,500 has been marked by consolidation inside a small 2.3% range from a technical point of view. Market watchers say that the $107,000 to $108,900 area is now the last strong line of defense. If this support isn’t kept up, the price might quickly drop below the $90,000-$95,000 region, where there is still an unfilled CME gap.
The Delta Cap indicator for the cryptocurrency, which is currently around $739.4 billion, shows that the long-term market structure is still pretty strong, even though it has been volatile recently. Bitcoin is currently trading below this rising floor, though, which shows that the current price level is not very strong.
Macroeconomic Factors Loom Large This Week
The US jobs data this week and other macroeconomic news will likely have a big impact on the short-term direction of Bitcoin. The fact that UK 20-year government bond yields are at their highest levels since 1998 shows that people are more worried about inflation and the risks of currency depreciation. These changes usually help hard assets like Bitcoin, but the cryptocurrency hasn’t been able to take advantage of this possible boost yet.
Bitcoin and traditional risk assets have also started to move apart. Gold has gone up 2.1% since Friday, while Bitcoin has gone down. This difference makes some wonder about Bitcoin’s ability to protect against stress in the traditional financial sector.
Bitcoin Price Prediction and Outlook
Bitcoin is about to face a big challenge in the $107,000-$108,900 support zone. If this level holds, it might set the stage for a recovery toward $115,000-$117,000, especially if US job data reveals weakness that could speed up interest rate reduction by the Federal Reserve.
However, not being able to retain support poses a lot of hazards on the downside. The concentration of leveraged bets and the fact that institutions are constantly rotating might make any meltdown worse, possibly pushing Bitcoin up to the $90,000-$95,000 level in only a few weeks.
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