Bitcoin rise Price Surpasses $111,000? 5 Things to Know About Bitcoin This Week

Bitcoin started the last week of August at a much lower level than its all-time high as traders became increasingly concerned. The major long-term liquidation event has brought back $110,000 as the new CME gap becomes a hope for the buyers. Bitcoin whales are being closely monitored after a large shift from BTC to ETH. Analysis shows that holders with fewer shares are still in accumulation mode, unlike the whales. The latest BTC price movement has led to speculation that the entire bullish market may have come to an end. The Fed's "preferred" inflation index is about to be announced as the market heavily bets on interest rate cuts. Weak BTC Fuels Rumors About Testing the 100,000 USD Level Bitcoin has returned to its lowest level in weeks as August comes to an end, and market participants are busy outlining new BTC price targets. Data from Cointelegraph Markets Pro and TradingView shows that BTC price fluctuations have shaped the market since the sudden volatility on Sunday.

This has pushed the BTC/USD price up to $110,700, the lowest level since July 10, and serves as a wake-up call for late buyers. CoinGlass tracking data estimates the total value of cryptocurrency liquidations in the last 24 hours to be $640 million at the time of writing.

Traders are divided on short-term prospects. While some view a retest of previous all-time highs as a bounce point, others see a more complex situation. Trader Daan Crypto Trades has marked a "significant retracement" currently underway. "$BTC opened with a large CME gap today," he noted, referring to the weekend gap in the futures market for Bitcoin from CME Group. "This is the largest enrollment period we have seen in recent weeks. We have frequently opened additional scholarship spots, and most of them were filled by Monday/Tuesday."

Another trader, Jelle, was among those who witnessed the trip down to even lower levels. "Bitcoin is still killing leveraged traders around the lows and it seems that the speculators are still hungry," he warned. "I really want the price to hold steady in this area, or we will fall back into the previous range, which will open up the possibility of testing the $100,000 level."

The order book data from CoinGlass shows that there is very little bid support just below the first opening price on Wall Street this week. Last week, Cointelegraph reported that an analyst believes the support level of over 100,000 dollars is still being maintained, even not being challenged. Bitcoin OG: Healthy Whale Distribution The sudden sharp drop in BTC price on Sunday has attracted the attention of Bitcoin speculators again. The current price, still within 10% of the all-time high, has proven to be attractive to major players looking to profit from long-term held coins. Last weekend, an entity sold a large amount of BTC after seven years, causing the market to lose $4,000 in just a few minutes, a decline that the market has yet to recover from. Data from the cryptocurrency intelligence company Arkham uploaded to X by the analysis account Lookonchain shows that this entity is converting from Bitcoin to Ether. "In the past 5 days, they sent ~22,769 $BTC($2.59 billion) to Hyperliquid to sell, then bought 472,920 $ETH($2.22 billion) and opened a long position of 135,265 $ETH($577 million)," the article summarizes while forwarding the related BTC and ETH addresses. Currently, the value of BTC for this company is around 11.4 billion dollars, with a profit margin of 1.675%. "There is no need for conspiracy theories about BTC on paper. The price has stagnated because some whales have reached the magical number and are dumping," commented Vijay Boyapati, a Bitcoin enthusiast, about this event. "This is very good - their supply is limited and selling is necessary for Bitcoin to become fully profitable. Large supply volumes, with enormous purchasing power, are being distributed to the community. This cycle is one of the greatest profit-generating events in history."

Statistician Willy Woo, who drew attention last month for his BTC sales, emphasized the influence that the oldest whales still have on market dynamics. "Why is the price of BTC increasing so slowly in this cycle?" he asked beside the chart. "The supply of BTC is concentrated around OG whales, who peaked their holdings in 2011 (orange and dark orange). They bought BTC at a price of 10 dollars or less. It takes more than 110,000 dollars of new capital to absorb each BTC they sell." As Cointelegraph reported, the distribution of whales has become clearly evident during the latest phase of the bull run. Data from onchain analytics company Glassnode confirms that as of Sunday, there are 2,000 addresses with balances ranging from 1,000 to 10,000 BTC, corresponding to all the largest "super" whales. This figure marks a new high for the month of August.

Smaller Bitcoin Holders Continue to Accumulate When considering other wallet groups, the CryptoQuant chain analysis platform observes the reasons why speculators still hope for a recovery. On Monday, the company warned that distribution activities have not yet taken place vigorously across the entire Bitcoin investor community. "After reaching an ATH of 124,000, Bitcoin has entered a retracement phase," collaborator BorisD summarized in a post on the Quicktake blog, also predicting that the retracement could "continue for some time." Unlike whales, smaller hodler groups still maintain an overall "accumulation" mindset. Specifically, wallets holding up to 10 BTC continue to increase their level of exposure. Conversely, those who have between 10 and 100 BTC exhibit distribution behavior, moving to take profits en masse when the price reaches 118,000 dollars. BorisD stated that from 100 to 1,000 BTC, the market influence will increase significantly. "Although generally in an accumulation phase, they have shown a balance between accumulation and distribution since the 105K level, reflecting hesitation," he said. This level serves as an important support-reversal area.

Thanks to the relatively large scale of the related wallets, CryptoQuant describes the current distribution activity as "dominant." Conclusion post: "Distribution is still the dominant trend, but its intensity is weakening as Bitcoin declines" "The level of 105,000 is notable as the strongest zone. A drop to this area will create significant pressure on the market and may cause widespread fear." Has the Market Rally "Ended" Yet? For some market participants, there are not many reasons to expect a full return of the Bitcoin bull market. Those who have had a conservative view on future price movements have doubled their outlook as BTC/USD fell to its lowest level since early July. Among them is the famous trader Roman, whose latest analysis warns that the high time frame signals indicate that the strongest bullish phase has passed. To provide evidence, he cited a head and shoulders reversal pattern that is taking place, with the third "shoulder" element yet to appear. "All we need to do is establish a reversal model so we can short sell. They will get stuck in another low volume pump again," he predicted. "The price surge of $BTC has ended." Previously, Roman and others pointed out the decrease in trading volume and the weakening relative strength index data ( RSI ) to reinforce the argument that Bitcoin has lost momentum. When the price reached a new high, the RSI again created lower highs, a classic bearish divergence pattern. Last weekend, referencing Wyckoff's analysis, the trading account ZAYK Charts set a potential bearish target for BTC/USD at $95,000. "$BTC is still moving exactly as Wyckoff predicted"

The Inflation War Of The United States Is Lurking Behind The Federal Reserve's preferred inflation index will be released at a crucial time for economic policy. The Personal Consumption Expenditures index print (PCE) for July, scheduled to be released on Friday, will be of particular importance to both Fed officials and the markets seeking confirmation of an interest rate cut next month. Last week, at the annual symposium in Jackson Hole, Fed Chairman Jerome Powell unexpectedly changed his previous hawkish stance. Risk assets immediately surged as hopes for interest rate cuts grew. Since then, the sentiment has cooled as there is still a lot of inflation data to be published before the interest rate decision in mid-September. The latest data from CME Group's FedWatch Tool indicates that the market's chance of a 0.25% cut is nearly 90%.

Commenting on this issue, Mosaic Asset trading company emphasized Powell's language and the Fed's changing approach to the 2% inflation target. In the latest edition of the regular newsletter The Market Mosaic, the Fed stated: "If abandoning the average inflation target means that the Fed is becoming less tolerant of inflation above the 2% target, then you should not expect a dovish tone from the Fed." "This will make the upcoming reports on inflation and payroll before the interest rate meeting in September important data for the Fed." Mosaic stated that betting on multiple interest rate cuts could be a "mistake" in the upcoming strategy. In another development, Nvidia's earnings on Wednesday could impact cryptocurrencies and risk assets, with strong performance expected. The trading source The Kobeissi Letter summarizes that: "Nvidia is about to close a strong earnings season as attention shifts to the Fed."