Bitcoin’s price plunged to $107,000, triggering $196 million in long position liquidations, as profit-taking and leveraged unwinds intensified market pressure, per Coinlive.me. The cryptocurrency tested the critical $107,000 support zone, with an intraday low of $107,709, marking a 2.78% decline to $113,234, per. Ethereum (ETH) dropped over 5% to $4,070, while XRP showed resilience, holding above $2.90, per. Edul Patel, CEO of Mudrex, highlighted $107,600 as a healthy accumulation zone, with rising “buy the dip” interest signaling potential rebound, per.
The liquidation event coincides with $751 million in Bitcoin ETF outflows in August, reflecting waning short-term appetite, per. Ethereum ETFs also saw inflows taper to outflows, per. On-chain data reveals liquidity clusters at $107K and $91K–$92K, with declining exchange reserves ($500M less BTC in July) indicating underlying demand, per. Kronos Research’s Vincent Liu attributes the dip to profit-taking and leveraged liquidations, noting ETH’s $4,200 pivot as key, per. Presto Research’s Peter Chung warns of volatility ahead of Fed Chair Jerome Powell’s Jackson Hole speech on August 22, with a 25 bps rate cut expected in September (85% probability per CME FedWatch), per.
BTC’s RSI at 51 and MACD flattening suggest neutral momentum, with support at $106,100 and resistance at $110,200, per. A break above $110,200 could target $114,500, per Patel. ETH and XRP demonstrated relative strength, with ETH’s $4,200 level pivotal amid capital rotations, per. Bitcoin dominance slipped to 59%, boosting altcoins, per. Historical trends indicate September uncertainty, but long-term holders remain optimistic, per.
The $196M liquidations underscore leverage risks, per. Investors should monitor ETF flows on SoSoValue and FOMC minutes via federalreserve.gov. Dollar-cost average into BTC or ETH with stop-losses below $106,100 and $4,000, or diversify into USDC, per TradingView. Follow @TheBlock__ on X for updates. A dovish Powell speech could rally BTC to $120,000, but a hawkish tone risks a drop to $105,000, per. Despite short-term flux, BTC’s structural setup remains bullish for 2025, per.
