Bitcoin Could Extend Short-Term Downtrend After Losing $110,000 Support Amid Whale Dump and Rising Institutional Demand

• BTC lost daily support at $110,000 and may test $100,000.

• Whale sold 4,000 BTC for ETH, while trading volume rose 15% amid the decline.

• Bitwise data shows institutions bought 690,710 BTC YTD vs. 109,072 BTC mined—demand outpaces supply by ~6x.

Bitcoin price outlook: BTC lost $110,000 support; institutions buying heavily. Read levels to watch and what traders should consider now. Read more.

What is the current Bitcoin price outlook?

Bitcoin price outlook shows short-term bearish momentum after BTC closed below the $110,000 daily support. Technical indicators and rising trading volume point to potential further downside toward $100,000, while institutional accumulation suggests a stronger long-term trajectory.

How is trading volume affecting the short-term trend?

Rising participation amid falling prices demonstrates strong downside conviction. BTC recorded a 15% surge in trading volume as it hovered near $108,500, which typically signals accelerating selling pressure and higher probability of continued short-term declines.

Why did a whale sell 4,000 BTC and what does it mean?

On August 30, a whale moved 4,000 BTC in two 2,000 BTC transactions, selling BTC and accumulating ETH on the spot market. Blockchain tracker mentions (Lookonchain, X/BTC_Archive) indicate the whale added substantial ETH holdings while reducing BTC exposure—a reallocation that can increase short-term selling pressure on BTC.

How strong is institutional demand for Bitcoin?

Institutional demand for Bitcoin remains notable. Bitwise data shows institutions purchased 690,710 BTC YTD while miners produced 109,072 BTC in the same period, implying institutional demand is about six times available mined supply. Historical context: institutions bought 913,006 BTC in 2024 versus 217,771 BTC mined, coinciding with a 150% price rise that year.

What technical levels should traders watch?

Technical analysis highlights these key levels:

• Immediate resistance: $109,592 (upper major liquidation level).
• Broken support: $110,000 (daily close below this level).
• Support to watch: $107,490 and $107,261 (major liquidation level).
• Downside target if broken: $100,000 (~7.5% decline scenario).

What do indicators show?

Supertrend has turned red and sits above price, indicating a downtrend. RSI is ~38, suggesting bearish sentiment and approaching oversold territory. If $107,261 fails, on-chain liquidations could accelerate due to over-leveraged long positions.

What are BTC’s major liquidation levels?

CoinGlass data lists major liquidation regions at $107,261 (lower) and $109,592 (upper). Traders hold roughly $664 million in long positions and $1.06 billion in short positions around these levels, making them focal points for forced liquidations and rapid price moves.

Source: X/BTC_Archive; Data referenced from Bitwise, Lookonchain, CoinGlass, TradingView.

Source: TradingView

Frequently Asked Questions

Is BTC likely to drop to $100,000?

Short-term probability is elevated if BTC loses the $107,261 support—models indicate a possible 7.5% decline to around $100,000 if downside momentum persists and liquidations accelerate.

Should traders sell after the whale offload?

Decisions should be risk-based. Whale selling can pressure price short term, but institutional accumulation and on-chain flows point to durable demand. Manage risk with stops and position sizing.

Key Takeaways

• Short-term risk: BTC closed below $110,000; watch $107,261 and $107,490 for breakdowns.
• Institutional demand: Institutions have purchased ~6x more BTC than miners mined YTD, supporting long-term fundamentals.
• Action: Monitor liquidation maps and volume; use defined risk management if trading the current downtrend.

Conclusion

Bitcoin’s short-term technical picture is bearish after losing the $110,000 support, with rising volume and whale selling increasing the risk of a move toward $100,000. However, robust institutional demand—highlighted by Bitwise and on-chain trackers—supports a constructive long-term view. Track key liquidation levels and use disciplined risk management as price action unfolds.