Bitcoin is going down recently due to a combination of several factors:
- A major whale sold 24,000 BTC worth over $2.7 billion, which caused a flash crash and significant selling pressure. This whale sale triggered the largest liquidation event of the year with about $900 million in leveraged positions being forcibly closed in crypto derivatives markets.
- Technical analysis shows a bearish shift, with Bitcoin falling below key support levels such as the 100-day simple moving average and Ichimoku cloud. This signals weakening momentum and increases the likelihood of further declines.
- Overleveraged positioning in the market has been squeezed, causing forced liquidations among traders who were betting on higher prices. The total crypto market has seen large liquidation losses recently.
- Market structure issues including thin order books and liquidity challenges make the market vulnerable to large transactions triggering cascading sell-offs.
- Seasonal trends also play a role, as September historically tends to be a weak month for Bitcoin price performance, with average losses during bull market years.
Despite this downturn, institutions like MicroStrategy continue to accumulate Bitcoin, indicating some long-term confidence remains. However, the combination of whale selling, technical bearishness, leveraged liquidations, liquidity fragility, and seasonal headwinds is driving the current price decline. As of August 26, 2025, Bitcoin is trading just above $110,000, down about 11% from a mid-August high of $124,533.
