Highlights:
- Bitcoin is trending towards $112,507 resistance after bouncing off support
- A rally through $112,507 could see Bitcoin hit $120k short-term
- Growing institutional interest in Bitcoin could drive Bitcoin momentum
Bitcoin (BTC) is down for the last 24 hours, reflecting a downtrend that started over the weekend. At the time of going to press, Bitcoin was trading at $110,151, down by 1.57% in the day. However, even as the price goes down, daily trading volumes are going up. At the time of writing, daily trading volumes were up by 4.83% to stand at $84.16 billion.
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This is an indicator that holders are exiting their positions, while short sellers are taking positions in anticipation of another leg down in the short term. There are a couple of factors that are weighing down on the price of Bitcoin in the short term.
Whale Dump Adding Bearish Pressure to Bitcoin
One of them is the fact that a whale recently dumped a significant amount of Bitcoin. The whale offloaded 24,000 Bitcoin worth more than $800 million, a factor that triggered a flash crash in the price of Bitcoin. This follows a trend of other long-term whales liquidating their Bitcoin since it crossed the $100k mark. While this marks a shift in the kind of players that hold Bitcoin, it has also created a lot of volatility in Bitcoin, a factor that is evident in its price action.
🚨 RED MORNING AFTER THE CRASH
A single whale just dumped 24,000 $BTC (~$300M), triggering a wipeout:
🔻 $665M liquidated in 24h
🔻 $500M+ longs rektBut here’s the twist 👇
This whale still holds 152,874 BTC (~$17B) coins linked to HTX from 6 years ago.
If more of this stash… pic.twitter.com/itzUFzcahy— Junaid Dar (@JunaidDar85) August 25, 2025
Analysts Point to Possible Bitcoin Slide to $105K Adding to Selling Pressure
The selling pressure is also accelerated by analysts increasingly taking a bearish look at Bitcoin, at least for the short term. There is a growing consensus among analysts that if Bitcoin drops below the $110k price level, which is currently under pressure, then a correction to $105k, which is a critical support level, could follow. Other analysts believe that Bitcoin could drop to around $92k if the $105,000 price level does not hold. Such predictions could be weighing down on short-term traders and giving weight to Bitcoin short sellers.
I wonder how whales use the same playbook again and again.
Look at the $BTC chart, and compare that with the Q2 chart.
Similar consolidation followed by a capitulation and then a new ATH.
I still think there's a chance of BTC going below $110K which will mark the bottom.… pic.twitter.com/WjaxQlgedk
— BitBull (@AkaBull_) August 22, 2025
Institutional Adoption Could Trigger Rebound
Despite all the selling pressure that is weighing down on Bitcoin at this point, the odds are high that it could be headed for a major price rally once the markets stabilize. One of the factors supporting such a scenario is the fact that institutional money is buying up Bitcoin even as the older whales exit. Strategy, one of the top corporations leading the way in buying Bitcoin, has recently added 3081 Bitcoin to its stash, worth about $396 million.
AMID STRATEGY’S $357M BITCOIN BUY, REASSERT SOVEREIGNTY
Strategy’s latest 3,081 BTC addition today—pushing holdings to 632,457—signals unwavering faith in Bitcoin’s decentralized protocol, where peer consensus and immutable halvings counter inflationary theft and surveillance… pic.twitter.com/kuE2hzKo7D
— A Bitcoin Strategy (@abtcstrategy) August 25, 2025
Strategy now owns 632,457 Bitcoin, valued at more than $70 billion. Many other companies are currently building Bitcoin treasuries. Data shows that there are currently over 150 companies that hold more than 1 million Bitcoin. This corporate accumulation has pushed the amount of Bitcoin available on reserves to below 15% of the total supply. Such a narrowing supply as corporate demand grows could trigger an unprecedented spike in the price of Bitcoin.
Upcoming Rate Cuts Could Send Bitcoin Higher
The macro environment could be the biggest push that Bitcoin needs to rally as institutional demand grows. There is a growing consensus that interest rates could start coming down as soon as September. This is after the speech by Jerome Powell during his August 22 speech at the Jackson Hole Symposium. If this happens and money flows into risk-on assets, the odds are high that Bitcoin could rocket to over $200k. This is mainly due to its shrinking supply relative to its demand.
The Federal Reserve tipped their hand and so we are expecting interest rates to drop starting mid September. This is huge news for investors. pic.twitter.com/pkxomxw0zJ
— Stefan Mischook (@killersites) August 23, 2025
Technical Analysis – Bitcoin Trending Towards 2-Day Support
After the weekend correction, Bitcoin bounced off $109,085, a price which is now support. However, bears appear to be gaining momentum and pushing Bitcoin back to this price level.
In the event that Bitcoin drops through the $109,085 support, then a correction to $105,000 could follow. On the other hand, if bulls take control and keep pushing Bitcoin higher, then Bitcoin could retest $112,507 in the short term.
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