On August 26, 2025, Bitcoin fell below its 100-day moving average due to cascading liquidations and shifting macroeconomic conditions, leading to renewed bearish sentiment.
Bitcoin's Decline and Causes
Bitcoin's price dropped below the 100-day moving average, a critical support level, sparking renewed bearish sentiment. This decline was mainly driven by cascading liquidations and shifting macro conditions, with over $500 million in liquidations recorded.
Impact on ETFs and the Market
Major institutional and retail investors have shown caution, as evident from the $140 million net outflows from U.S. spot Bitcoin ETFs. Whale wallet accumulation suggests optimism for Bitcoin's long-term potential, despite the immediate bearish sentiment.
Historical Recoveries After Declines
Similar technical breaches occurred in May 2021 and June 2022, resulting in rapid liquidations and negative sentiment. Both instances were followed by periods of accumulation and recovery, mirroring the current scenario's potential path. Experts suggest that market stabilization will rely on macroeconomic improvements and continued institutional interest.
The current situation in the Bitcoin market highlights its fragility and the importance of maintaining strong technical support levels for sustained recovery.
