Bitcoin Slides Below $108,000 As Whale Selling Triggers Technical Breakdown

(MENAFN- The Rio Times) Bitcoin dropped below $108,200 on August 30 as major whale transactions and deteriorating technical indicators triggered widespread selling across cryptocurrency markets.

The world's largest digital asset fell 2.57% in 24 hours after breaking critical support levels that analysts had warned could lead to deeper corrections.

Technical analysis reveals Bitcoin failed to hold above the crucial $110,000 support zone, with the Relative Strength Index falling to 38.18 on four-hour charts and 43.29 on daily timeframes.

The MACD histogram shows negative divergence while trading volume declined during the breakdown, suggesting weak buying interest at current levels.

Moving averages across multiple timeframes now point downward, confirming bearish momentum has taken control.

The selloff accelerated after Bitcoi broke below its 200-day moving average, triggering algorithmic selling from institutional traders.

Fibonacci retracement analysis shows the cryptocurrency failed to hold the 23.6% level at $120,753, with the next major support target at $105,300 representing the 38.2% retracement.

Market makers report increased demand for downside protection as volatility spiked from recent lows.

Ethereum exchange-traded funds continued attracting institutional capital despite broader market weakness, recording $4 billion in net inflows during August compared to $628 million in outflows from Bitcoin ETFs.

BlackRock's ETHA led the surge with $262 million in single-day inflows on August 27, highlighting diverging institutional preferences between the two largest cryptocurrencies.





The Global Liquidity Index shows mixed signals, with the yellow indicator line remaining elevated but failing to support risk assets amid macroeconomic uncertainty.

Federal Reserve policy expectations and upcoming employment data continue weighing on market sentiment as traders position for potential September volatility.

Spot Bitcoin ETFs recorded $126.7 million in outflows on August 29, ending a five-day inflow streak as institutional investors reduced exposure ahead of month-end rebalancing.
Bitcoin Slides Below $108,000 as Whale Selling Triggers Technical Breakdown
Fidelity's FBTC led outflows with $66.2 million while Grayscale's GBTC shed $15.3 million, though BlackRock's IBIT managed to attract $24.61 million in fresh capital.

BONK emerged as the day's standout performer, surging 5.7% against broader market weakness as meme coin traders rotated into smaller-cap alternatives.

The Solana-based token benefits from technical breakout patterns and growing retail interest, with analysts targeting potential 65% gains if key resistance levels break.

Cryptocurrency fear and greed metrics declined from neutral to fearful territory as selling pressure intensified.

Social sentiment analysis shows decreasing bullish mentions across major platforms while derivatives markets display elevated put-call ratios indicating hedging activity.

Market structure analysis reveals a descending triangle pattern on Bitcoin's daily chart, with declining volume confirming the bearish setup.

The breakdown below $108,500 opens targets toward $105,000 where stronger support may emerge.

Bollinger Bands show price approaching the lower band on four-hour charts, suggesting oversold conditions could trigger short-term bounces.

Macroeconomic factors continue pressuring digital assets as bond yields remain elevated and the US dollar strengthens against major currencies.

Institutional portfolio rebalancing ahead of September month-end adds selling pressure while regulatory uncertainty in key markets dampens investor confidence.

The technical breakdown comes after Bitcoin touched the golden Fibonacci extension at $122,060 in July, representing a 1.618 multiple of the previous bull run.

This level has acted as strong resistance, with price rejection confirming the mathematical target's significance in current market cycles.

Analysts warn that failure to reclaim $110,000 support could trigger additional liquidations in leveraged positions, potentially extending the decline toward psychological support at $100,000.

However, oversold RSI readings suggest any further weakness may attract value buyers seeking entry opportunities at discounted levels.

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