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Image Source: Unsplash

Bitcoin is once again facing a defining moment. After setting a new all-time high of $124,128 just two weeks ago, the world’s largest cryptocurrency has slipped into one of its most precarious positions in over a year.

Bitcoin price is now hovering near $108,000, and investors are asking whether the recent slide is simply a pause before the next surge or the beginning of a deeper breakdown.

Bears press harder as $110K gives way

The Bitcoin price decline has been sharp. Since touching record highs in mid-August, Bitcoin has shed more than 12%, dipping below the crucial $110,000 threshold.

On Friday, it touched multi-week lows around $108,198, its weakest level since early July.

According to analyst Daan Crypto Trades, if the $108,366 support zone fails to hold, the next stop could be below $100,000.

$BTC Good area to keep watching. Right on top of the previous range & consolidation area. https://t.co/WEaG2IF6nV pic.twitter.com/Y7RftSqDio

— Daan Crypto Trades (@DaanCrypto) August 29, 2025

Technical indicators support that concern. On the daily chart, Bitcoin’s Relative Strength Index (RSI) has slipped under 50, showing bearish momentum.

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RSI indicator on Bitcoin price chart | Source: TradingView

On shorter timeframes, the coin is moving inside a steep descending channel, which suggests that downward pressure is still dominant.

Whales, liquidations, and a bruised market

The decline has not come without drama. Whale wallets have been unloading large chunks of BTC on major exchanges, particularly Binance, adding fuel to the selling pressure.

At the same time, data from CoinGlass shows that more than $528 million in leveraged positions, most of which are long positions, were liquidated in just 24 hours, leaving many traders burned and pushing prices further down.

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Source: Coinglass

According to observations, the BTC price is now sitting in what could be a reversal zone.

Some analysts point to a bullish RSI divergence on the four-hour chart as a possible sign of relief, with projections of a bounce back toward $123,000 if momentum shifts.

$BTC (Bitcoin), still coming off of a confirmed Bullish Divergence can still have a huge reversal back up to $123,000 in the works.

This means that despite the current action, we could see a nearly +15% move back near the All Time Highs... https://t.co/nRlstxD7dL pic.twitter.com/v0Mx9Fyo2n

— JAVON⚡️MARKS (@JavonTM1) August 29, 2025

However, sentiment remains fragile, and the inability to reclaim $112,000 or $114,000 as support has dampened confidence among bulls.

Bitcoin treasury bets by institutions face a reality check

Beyond the charts, Bitcoin’s appeal as a corporate treasury asset is also facing a reality check.

For years, MicroStrategy — recently renamed Strategy — was hailed as the pioneer of this model. It now holds more than 632,000 BTC and has seen its stock soar by over 2,200% since its first purchase in 2020. But other firms have not been so lucky.

GameStop, which announced its Bitcoin strategy in March, briefly lifted its stock to $35 before sliding back to $22.79, down nearly 30% this year.

Empery Digital, which pivoted from electric vehicles to Bitcoin in July, saw its stock jump to $21 before falling back to just under $7.

Sequans Communications, a French semiconductor firm, is now trading below $1 after its own treasury move.

Even smaller players like Spain’s Vanadi Coffee and Hong Kong’s Ming Shing Group have struggled to maintain investor enthusiasm despite adding BTC to their balance sheets.

There are exceptions, however. Japan’s Convano, a nail salon franchiser, has outperformed larger peers despite holding just 365 BTC.

Also, Nakamoto Holdings, which merged with healthcare provider KindlyMD earlier this year, has also emerged as a strong performer.

Long-term BTC holders still show conviction

Despite the short-term turbulence, on-chain data paints a more complicated picture.

Exchange netflows, measured on a 30-day moving average, have remained negative since April.

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Source: CryptoQuant

This means that more BTC has been leaving exchanges than entering, a sign that many investors are holding coins in cold storage rather than preparing to sell.

The drop in exchange reserves suggests a possible supply squeeze in the making.

While short-term selling, especially in the futures market, has rattled prices, long-term accumulation continues in the background.

If that trend persists, it could lay the foundation for a recovery once current pressures subside.

For now, though, Bitcoin (BTC) finds itself at a crossroads, with the break below $110,000 intensifying fears that the symbolic $100,000 line could soon be tested.

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