Bitcoin’s Wild Ride: From Sky-High to Crashing Below $110k 🚀📉

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Oh, the joys of cryptocurrency! Bitcoin, that digital darling of ours, decided to take another nosedive today, plummeting below the $110,000 mark. Just when you thought it might finally break past the $110k barrier, it decided to remind us all who’s boss-or rather, who isn’t. Analysts, those ever-vigilant guardians of the financial realm, have noted that the 30-day moving average has sunk to its lowest point since 2018. Good times, right? 😅

  • Bitcoin price tumbled below $110,000 as its 30-day moving average took a nosedive to the lowest level since 2018.
  • The downward spiral might be due to the Fed-fueled rally fizzling out, leaving BTC to face a wave of selling pressure. 🌊

On August 27, Bitcoin (BTC) price took a dramatic turn from its lofty peak of $117,279 last Friday, settling around $109,526. In a flash crash that could only be described as a digital rollercoaster, it dipped below the $110,000 threshold. As of now, it’s hovering around $110k, trying to muster the strength to climb back up. 🤞

And just when you thought things couldn’t get any more exciting, the 30-day moving average for the buy or sell ratio hit rock bottom-its lowest level since May 2018, according to Crypto Quant analysts. This suggests that the Bitcoin market is under significant selling pressure in the short term. Who needs drama when you have crypto, right? 🎉

Earlier this month, the brief rally fueled by optimism around potential U.S. interest rate cuts from the Fed Chair’s Jackson Hole speech seemed like a breath of fresh air. But alas, that momentum has now dissipated. Without a new catalyst, Bitcoin might retest the $100,000 level or even lower before it finds its footing again. 🏃‍♂️💨

Bitcoin Price Analysis

As the chart so eloquently illustrates, Bitcoin’s price has been on a steady decline, breaking well below the 30-day moving average, which had been acting as a stubborn resistance throughout the downturn. 📉

This bearish trend persisted until it hit a low near $110,200, where it showed signs of a potential reversal. Since then, Bitcoin has bounced back sharply, breaking out of the descending channel and climbing above the MA marked by the blue line. It’s currently trading around $110,938. 📈

The Relative Strength Index (RSI) indicates an oversold condition at the bottom of the price move, followed by a strong upward momentum. The RSI has now crossed above the 70 level, currently reading 70.82, suggesting the asset is in overbought territory. This could mean a short-term exhaustion of bullish momentum, potentially leading to a brief pullback. 🏃‍♂️

However, the strong rebound and the breakout from the channel suggest that bulls are regaining control. If the price holds above the MA, a potential recovery might be on the horizon. Fingers crossed! 🤞

Why Did Bitcoin Crash Briefly?

Just before the crash, the RSI peaked at over 70, signaling that Bitcoin was in the overbought zone. This likely triggered profit-taking and short-term traders exiting their positions, accelerating the drop. 🚨

With the rally losing steam after the Fed’s speech, the downward trend continued until buying interest was rekindled around the $110,200 mark. Once it entered oversold territory, it managed to recover briefly from the temporary dip. 🌱

The crash was also fueled by a massive whale sell-off that sparked a flash crash and widespread liquidations across the market. On August 26, a single wallet reportedly dumped around 24,000 BTC, triggering forced liquidations of over $940 million in Bitcoin, Ethereum, and other cryptocurrencies. Talk about a whale of a day! 🐋💰

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2025-08-27 14:03