- Bitcoin dropped to its lowest level since July 8, with over $530M in liquidations fueled by whale selling and weak macro signals.
- Traders eye a possible rebound from bullish RSI divergence, though risks of a fall toward $100K remain.
Bitcoin faced fresh turbulence on Friday, sinking to its lowest level since July 8 as liquidations across the crypto market surpassed $530 million. The drop came as whale selling pressure and macroeconomic uncertainty weighed heavily on investor sentiment.
Bitcoin Slides Toward $100K Amid Whale Selling
Data showes Bitcoin (BTC) falling nearly 4% daily, trading around $108,480 at the time of reporting. Market consensus leaned toward further downside, with analysts warning of a possible dip toward the $100,000 mark if bearish pressure continues.
The latest sell-off was linked to whales unloading large tranches of BTC, with Binance seeing heavy distribution that amplified downward moves. CoinGlass reported that within 24 hours, crypto liquidations surged to nearly $540 million, adding further strain on prices.
Bulls Look to RSI Divergence for Hope
Despite the steep decline, traders highlighted one potential sign of relief: a bullish divergence on Bitcoin’s relative strength index (RSI). This occurs when RSI records higher lows while price records lower lows, often suggesting a reversal could be brewing.
Crypto analyst Javon Marks suggested that Bitcoin could still rebound sharply. According to his outlook, BTC might see a reversal back to $123,000 — a potential 15% climb from current levels — if bullish divergence plays out.
However, Bitcoin’s failure to reclaim $112,000 as support left traders cautious, with $114,000 noted as a critical weekly close threshold for the bulls to regain control.
$BTC – #Bitcoin failed to regain the 112K zone with full conviction.
I’m watching these two zones. They want you to think this cycle is over. pic.twitter.com/6DmoixRGsK
— Crypto Caesar (@CryptoCaesarTA) August 29, 2025
Macroeconomic Pressures Add to the Sell-Off
Beyond technicals, broader economic factors have also been pressuring Bitcoin. September is historically a weak month for the asset, and recent U.S. inflation data failed to provide relief.
The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Index, matched expectations but pointed to a possible inflation rebound. While markets still expect the Fed to cut interest rates in September, analysts warned that stronger-than-expected payroll data next week could put that outlook at risk.
For now, Bitcoin remains trapped between bearish macro conditions and the faint optimism of a potential RSI-driven rebound. Traders are closely watching the $100,000 support level and upcoming Fed decisions to determine whether Bitcoin can stage a recovery or extend its losses deeper into September.
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