Bitcoin (BTC) Price Prediction: Bitcoin Dips Below $110K as Traders Watch $105K Support for Possible Rebound

Bitcoin (BTC) struggled below the $110K mark today, sparking renewed attention as traders weigh whether a dip to $105K could present a buying opportunity.

The latest pullback comes amid high trading volumes and continued institutional interest, including strong inflows into BTC ETFs. Market watchers are analyzing technical signals, whale activity, and macro factors to anticipate Bitcoin’s next move.

Market Overview: Technical Analysis Signals Short-Term Weakness

Bitcoin price today fell to $109,800, representing a 2.7% decline over 24 hours and pushing BTC’s market capitalization to approximately $2.18 trillion. Ethereum (ETH) also dropped by 5.5% to $4,336, signaling broader market volatility.

Bitcoin ($BTC) climbs to new highs as RSI dips—a classic divergence hinting at a potential top like in 2021. Source: Ali via X

Technical indicators point to near-term caution. TradingView’s data shows 13 sell signals against only three buy signals on the daily chart. The 200-day exponential moving average (EMA) currently stands at $103,995, providing critical support if selling pressure intensifies. Meanwhile, the RSI has cooled to 40, approaching oversold levels, while the Stochastic RSI sits at 27, hinting that downward momentum may be easing.

Analyst Ali (@ali_charts) commented, “Bitcoin price is still making higher highs while RSI trends lower, which often signals potential trend reversals.”

Momentum oscillators suggest that the current pullback could be a temporary shakeout before a potential upward move, echoing patterns seen earlier this year.

Trend and News Factors: Whales, ETFs, and Halving Impact

Several factors are influencing Bitcoin’s recent price action. Whale activity has played a notable role, with large BTC transfers to market-makers pushing prices temporarily below $109,500. Trader Merlijn described these moves as part of the “whale playbook,” highlighting deliberate liquidity shifts affecting short-term volatility.

Whales trigger a Binance dump—massive $BTC and $ETH flows set up a classic dip-and-rally play. Source: @MerlijnTrader via X

Simultaneously, Bitcoin ETFs continue to attract institutional capital. SoSoValue reports $178.9 million in net inflows into U.S. spot BTC ETFs on August 28, bringing cumulative inflows above $54 billion. BlackRock’s IBIT ETF alone added $63.7 million, while Fidelity’s FBTC booked $15 million. Analysts note that these flows could provide a foundation for a sustained rally, even amid short-term dips.

Additionally, the upcoming Bitcoin halving in 2025 remains a potential catalyst for price acceleration. Historically, halving events reduce BTC supply growth, which can create bullish momentum as demand increases.

Expert Insights: BTC as an Inflation Hedge and Year-End Outlook

Despite short-term volatility, many experts remain bullish on Bitcoin’s medium-to-long-term prospects. Omkar Godbole, Chartered Market Technician at CoinDesk, highlighted the current 14-month RSI: “While a bearish divergence is present, traders are positioning for continued gains, especially with December BTC call spreads targeting prices as high as $190,000.”

Bitcoin ($BTC) retests the $110.5K demand zone—holding $116.2K could fuel a run to $120K, but failure risks a drop toward $105K. Source: @oxsaintdotsol via X

Institutional analysts emphasize Bitcoin’s role as an inflation hedge, with high-net-worth investors maintaining long positions. OTC trader Jake Ostrovskis noted: “Blocks suggest traders are gearing up for further gains, with notable activity in December BTC call spreads ($125K/$160K).”

Investors should watch for the interaction between whale activity, ETF flows, and technical indicators like RSI and MVRV bands. If BTC holds $105K, analysts see a plausible rebound, potentially extending gains toward year-end targets of $150,000 or higher.

Looking Ahead: BTC’s Next Move and Long-Term Outlook

Bitcoin’s current dip below $110K represents a critical juncture. Key support at $105K could serve as a springboard for renewed upward momentum, while resistance around $118K may test bullish strength in the near term.

Bitcoin (BTC) was trading at around $108,516, down 3.66% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin

In summary, while short-term corrections are underway, Bitcoin’s long-term outlook remains bullish, supported by institutional adoption, ETF inflows, and upcoming halving dynamics. Traders are advised to remain vigilant but prepared for opportunities in the current market landscape.