Analysts say the pullback reflects a typical correction within historical norms, even as market signals suggest the structure remains “fragile.”
The leading cryptocurrency has been consolidating inside a descending parallel channel, facing resistance near $110,500. A decisive daily close above this level could mark a breakout from the downtrend, paving the way toward the $110,000-$117,000 liquidity zone, where the 50-day and 100-day simple moving averages converge. Clearing this area would improve chances for a rally toward fresh all-time highs.
CryptoQuant analyst Darkfost noted that Bitcoin’s 12% decline since its August peak of $123,000 is well within the range of historical bull market pullbacks.
He emphasized that corrections of 20-25% are more typical during strong cycles, arguing that speculation about the bull run ending is premature. “This correction is nothing unusual. Bitcoin’s upward trend could very well continue,” he said, adding that such pullbacks help reset leverage and create fresh entry points for long-term investors.
Also, Crypto influencer Bitcoin Vector pointed out that $110,000 has emerged as a strong resistance zone. He believes downside pressure is easing and upward momentum could resume if Bitcoin closes above $111,000. Meanwhile, liquidity maps show heavy clusters between $110,000-$111,000 and $105,500-$107,000, which could act as short-term reversal points, according to analyst AlphaBTC.
Cointelegraph reports that Bitcoin must reclaim the 20-day EMA at $112,500 to avoid the risk of sliding toward $105,000, or even $100,000 in a deeper correction.
With Bitcoin reaching new highs of $124,128 on Aug. 14, a 50% drop would drag it back to around $60,000 a level last seen in October 2024. That kind of move would leave Strategys Michael Saylor red-faced after declaring in June that winter is not coming back.
However, several other analysts are still holding out for prices above $150,000 by the end of this year.
While Bitcoin wrestles with resistance, Ethereum (ETH) is quietly preparing for its next move. The crypto asset has reportedly taken the lead in investor preference. According to CoinShares, crypto inflows hit $2.48 billion last week, with Ethereum accounting for $1.4 billion — far outpacing Bitcoin’s $748 million.
In August alone, Ethereum attracted $3.95 billion, pushing monthly inflows to $4.37 billion and year-to-date totals to $35.5 billion. By contrast, Bitcoin saw net outflows of $301 million during the same period.
After reclaiming its 2021 all-time high of $4,870 on August 22, ETH has entered a consolidation phase, according to Polymath co-founder Trevor Koverko. He expects a breakout by November, citing strong ETF inflows and growing activity on Ethereum’s Layer-2 networks.
“Ethereum looks poised for a grind higher over the next one to two months,” Koverko said, noting that bullish sentiment among treasury executives is rising rapidly.
Despite optimism around both BTC and ETH, prediction markets remain cautious. On Polymarket, traders assign a 68% chance that Bitcoin will dip below $100,000 again before 2026, highlighting lingering uncertainty.
