Bitcoin Slips to $108,700 as Whales Sell and Fed Jitters Grow

Bitcoin fell nearly 3.8% in the past 24 hours, trading at $108,700 and underperforming the broader crypto market.

The pullback followed a combination of technical breakdowns, macro uncertainty, and heavy whale selling, which together triggered a wave of liquidations across derivatives markets.

Technical breakdown sparks bearish pressure

Traders watched closely as Bitcoin dropped below the $114,500 support zone and slipped under its 30-day simple moving average ($115,600). Momentum indicators confirm the weakness: the MACD histogram sits at -568.92, while the RSI (44.79) suggests there may be further downside before a potential bounce.

Key Fibonacci retracement levels add to the caution. Bitcoin’s failure to hold above the 23.6% retracement at $120,753 has intensified short-term bearish sentiment. Analysts warn that if BTC closes below the 200-day EMA at $101,085, a deeper correction could follow.

Macro jitters weigh on sentiment

Macro factors also played a role in Friday’s slide. Markets digested the shock news of President Trump dismissing Federal Reserve Governor Lisa Cook on August 28, raising questions about central bank independence. Meanwhile, investors are bracing for the upcoming U.S. CPI release and the Fed’s next rate decision, both of which could influence dollar strength.
Bitcoin’s sensitivity to the greenback remains high. Its 60-day correlation with the DXY index strengthened to -0.89 this week, meaning that when the dollar rallies, Bitcoin often faces pressure.

Whale inflows accelerate selling

On-chain data added more fuel to the selloff. Roughly 12,000 BTC flowed into exchanges over the past week – the largest inflows since November 2024. This included a move from a dormant 2011-era whale, who transferred 330 BTC (about $39 million) to fresh wallets.

Historically, such activity signals potential profit-taking. The Exchange Whale Ratio recently hit 0.50, a level last seen before June’s 11% correction. With Coinbase and other venues showing higher-than-usual inflows, traders fear further downside pressure if whales continue to offload.

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What to watch next

For Bitcoin to regain bullish footing, reclaiming $114,500 is critical. Until then, bears appear to have the upper hand, especially if macro headwinds persist. Market watchers say a drop toward the 200-day EMA ($101,085) remains possible if selling accelerates.

Still, some analysts argue that dips in high-liquidity conditions may present long-term accumulation opportunities, particularly with ETF flows and institutional adoption trends intact.