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- Whale selling signals potential short-term BTC pressure, with $106K–$100K key levels.
- CPI week and Fed rate cut expectations heighten market uncertainty.
- Institutional inflows into BTC ETPs suggest renewed confidence despite bearish signals.
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Bitcoin (BTC) opens the second week of September under intense scrutiny as traders monitor critical resistance levels and growing fears of a sharp correction. With BTC hovering near $112,000, analysts are questioning whether the cryptocurrency could retest key support levels below $100,000 amid renewed selling pressure and macroeconomic uncertainty.
BTC Price Struggles Amid Bearish Whale Activity
Over the past month, large Bitcoin holders have intensified selling, echoing patterns last seen in the 2022 bear market. Data from CryptoQuant shows whale reserves declining by more than 100,000 BTC, signaling heightened risk aversion. Popular trader CrypNuevo identified $106,700 as a crucial downside target, while Telegram analytics channel Coin Signals highlighted a possible 30% correction from recent highs, potentially bringing BTC near $87,000.
The Taker Buy/Sell Ratio on Binance futures also raises red flags. Lower lows in the ratio, combined with expanding prices, historically signal periods of market consolidation or peaks. While institutional involvement adds nuance, weakening liquidity across major exchanges could pressure BTC further if the trend persists.
Inflation Data and Fed Policy Drive Market Sentiment
Investors are closely watching upcoming US economic indicators, including Wednesday’s Producer Price Index (PPI) and Thursday’s Consumer Price Index (CPI). Despite rising inflation, the Federal Reserve is widely expected to cut interest rates next week, with markets even speculating on a more significant reduction than the standard 0.25%.
Compared with other central banks, the Fed has remained unusually conservative, keeping rates steady throughout 2025 while peers like the European Central Bank and Bank of England have already cut multiple times. Market participants worry that recession signals, such as declining construction spending, could amplify volatility in BTC and traditional assets alike.
Also Read: EasyJet Founder Launches EasyBitcoin to Cut Fees
Institutional Re-Rotation Favors Bitcoin
After months of capital flowing from Bitcoin to Ether exchange-traded products (ETPs), data suggests institutions are rotating back into BTC. Last week, BTC-denominated ETPs saw $444 million in inflows, while Ether ETPs experienced net outflows exceeding $900 million. US spot Bitcoin ETFs added roughly $250 million over four days, signaling renewed institutional confidence in Bitcoin as the market digests macroeconomic risks.
Bitcoin faces a complex intersection of technical resistance, macroeconomic data, and whale-driven market dynamics. While short-term downside risks loom, renewed institutional rotation and potential Fed rate cuts could provide support. Traders and investors alike will closely monitor whether BTC can hold above $112,000 or face a test of key support near $100,000 in the coming weeks.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
