Bitcoin Struggles Below $108K as Liquidity Clusters Grow—Is a Bigger Crash Loading?

Bitcoin failed to hold above $112K, confirming a breakdown with price now trapped below both the 9-day EMA and 50-day SMA.

A large whale investor sold over 2,000 BTC for 48,942 ETH, continuing a rotation trend that has flipped holdings since 2017.

Liquidity heatmap shows high leveraged activity between $105K and $108K, forming a critical battleground for upcoming price movement.

Bitcoin tumbles below $108K as whales dump thousands of BTC for Ethereum, sparking panic across the market. Liquidity clusters grow near $105K, raising urgent questions about where BTC heads next.

Price Drops Under Key Technical Levels

Bitcoin is trading at $108,980 as at press time , the price has slipped 0.35% in the last 24 hours and recorded a 2.87% decline over the past 7 days. The move came after repeated failures to hold above the $112,000–$115,000 zone, which once acted as a strong support level. That same zone now appears to be working as resistance.

The 9-day Exponential Moving Average is trending lower at $110,195.30, while the 50-day Simple Moving Average sits even higher at $115,892.04. With price sitting under both, short- and mid-term trends remain bearish.

A recent tweet from Alpha Crypto Signal confirmed that sellers are still in control. Their short trade from $117,000 remains active, with $105,000 now seen as a key level to watch. Short-term bounces are being treated as entries for further downside moves.

Liquidity Zone Builds Between $105K and $108K

New data from Coinglass shows growing liquidity activity between $105,000 and $108,000. This area has attracted substantial order flow in recent weeks, as visible on the liquidation heatmap. Traders have been placing leveraged bets here, creating what some analysts call a battle zone between bulls and bears.

Recent price movement stayed within range, with a short-lived bounce near $107,000 that quickly lost momentum. The RSI lingers around 38, reflecting weak buying strength. Meanwhile, MACD has crossed above the signal line, showing early signs of slowing downside pressure—but no clear trend reversal has formed yet.

Whale Rotates from BTC to ETH Amid Broader Market Drop

A long-term whale investor has continued offloading Bitcoin, swapping 2,000 BTC for nearly 49,000 ETH. This move is part of an ongoing shift where more than 41,000 BTC has already been converted to Ethereum. The investor now holds 886,371 ETH. The total Bitcoin market cap fell from $2.22 trillion to under $2.15 trillion between August 25 and September 1. A steep sell-off on August 30 erased over $50 billion in value. Short-term recovery attempts followed but failed to establish a new upward trend. Selling pressure remains dominant across the board.

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