Bitcoin News Today: Bitcoin's Descent Mirrors 2021 Bear Market Warning Signs

Bitcoin balances are drawing attention as traders brace for key macroeconomic events that could influence price movements. The cryptocurrency has recently dipped below crucial support levels, prompting analysts to closely monitor technical indicators and on-chain data for signs of a potential trend reversal. As of the latest market data, Bitcoin (BTC) trades around $107,947, having fallen nearly 7.5% from its previous week's performance [1].

The drop has reignited discussions about Bitcoin’s short-term trajectory, with some analysts suggesting that a retest of the $90,000 level could be on the horizon. The $110,000 support level has been breached for the first time in nearly two months, marking a significant technical breakdown. Bitcoin's recent price action mirrors patterns observed before the 2021 bear market, particularly the bearish divergence on the Relative Strength Index (RSI), which has historically signaled cyclical tops [1].

Crypto analyst Ali Martinez highlighted that the bearish crossover on the Moving Average Convergence Divergence (MACD) indicator reinforces the downward risks. Additionally, the Bitcoin MVRV Momentum indicator has crossed into negative territory, historically a warning sign of market tops [1]. These on-chain signals suggest that the current rally may be nearing a pause, with a bearish bias becoming more pronounced. A weekly close below the $108,700 support could confirm a deeper trend shift, similar to what occurred in 2021, potentially leading to a retest of the $94,000 mid-range level [1].

Pseudonymous crypto analyst Altcoin Sherpa has also weighed in, noting that while the short-term outlook is concerning, the $103,000–$108,000 range offers strong support. The 200-day Exponential Moving Average (EMA) sits near $104,000, forming a potential floor for the price [2]. However, some analysts, like Ted Pillows, argue that the $124,000 level may serve as a local peak, with a retest of the $92,000 region expected to precede a potential reversal and new all-time high (ATH) by November or December [1].

On the macro side, traders are also watching for developments in ETF flows and institutional activity. Recent data show continued inflows into Bitcoin ETFs, with U.S. spot BTC ETFs recording $178.9 million in net inflows on August 28. Cumulative inflows now exceed $54 billion, with major players like BlackRock and Fidelity adding substantial volumes [3]. This trend suggests sustained institutional confidence, which could underpin a long-term bullish case for Bitcoin despite short-term volatility.

Whale activity has also played a role, with large transfers influencing short-term price swings. Whale-driven liquidity shifts have contributed to dips below $109,500, but analysts view these as part of broader "dip-and-rally" dynamics [3]. Additionally, the 2025 Bitcoin halving is being monitored as a potential catalyst for long-term price acceleration. Historically, halvings have reduced supply growth, often leading to upward pressure as demand increases.

Despite the near-term uncertainty, many analysts remain optimistic about Bitcoin’s long-term potential. Omkar Godbole, a Chartered Market Technician at CoinDesk, noted that traders are positioning for continued gains, with December call spreads targeting prices as high as $190,000 [3]. High-net-worth investors are also maintaining long-term positions, viewing Bitcoin as an inflation hedge.

Traders are advised to closely watch key support and resistance levels, including $105,000 and $118,000, respectively, as these will determine the next phase of Bitcoin’s price action. The interaction between technical indicators, whale behavior, and macroeconomic factors will likely shape the market’s near-term direction.