Bitcoin Faces Possible Drop Below $90,000 While ETFs Show Major Flows

Bitcoin is showing signs of potential capitulation, with analysts warning that the price could drop below $90,000. Traders are closely monitoring key support levels as institutional investors appear to rotate capital back from Ethereum to Bitcoin.

CrypNuevo analyst highlighted $106,700 as a key support level. Losing this threshold could trigger further declines. On X, the analyst commented,

“If the previous range lows continue to be resistance, price will attempt to hit the liquidation at $106.7k” 

Source: X

Analysts from the Coin Signals channel are even more cautious, predicting a 30% correction from the recent high of $124,000, potentially bringing Bitcoin down to $87,000. 

They suggest this scenario could unfold in late September or early October, based on historical cyclical correction patterns.

Source: X

The $112,000 level remains a key target for traders hoping resistance turns into support.

The week ahead brings critical macroeconomic data, including the Producer Price Index (PPI) on September 10 and the Consumer Price Index (CPI) on September 11. 

Rising inflation and signs of labor market weakness create challenges for the Federal Reserve, which has kept rates unchanged through 2025 despite global central banks cutting theirs.

Target Rate Probabilities for 17 Sep 2025 Fed Meeting. Source: CME Group

Construction spending, a key economic signal, is slowing, fueling recession fears. Mosaic Asset Company emphasized, that the long-term trajectory of the S&P 500 will depend on the state of the economy after the Fed begins easing monetary policy.

Institutional capital flows

The narrative of capital moving from Bitcoin into Ethereum is fading. Last week, Bitcoin ETFs saw $444 million in inflows, while Ethereum ETFs experienced over $900 million in outflows. This marks a return of institutional confidence to Bitcoin.

US Bitcoin ETF Fund Flows. Source: Farside Investors

Whales and market risk

Large Bitcoin holders are selling aggressively. CryptoQuant analysts reported that whales have offloaded more than 100,000 BTC in the past 30 days, signaling risk aversion. Caue Oliveira from CryptoQuant noted:

“This is the largest 30-day decline in whale balances since mid-2022, reflecting ongoing portfolio adjustments by major players.”

Changes in Bitcoin balances among major holders. Source: CryptoQuant

Futures market signals

CryptoQuant Research revealed a classic bull market correction signal: the buy/sell ratio on Binance is decreasing while the price remains relatively high. 

Divergence between the buy/sell ratio and the price of Bitcoin. Source: CryptoQuant

According to analyst Mignolet:

“This divergence often occurs during price minima or sideways consolidation phases, typically preceding recoveries.” 

However, they warn that liquidity weakening could escalate market pressure:

“If liquidity does not recover, even positive catalysts may not prevent a serious situation.”