After a short-lived recovery, Bitcoin (BTC) is attempting to bounce from a crucial level to reclaim the $110,000 support. However, some analysts suggest that a retest of the $90,000 level could be the next stop for the cryptocurrency.

Related Reading

Bitcoin Drops To Weekly Lows

Bitcoin lost the $110,000 support for the first time in nearly two months, dipping below the lower boundary of its local range, between $108,700-$119,500. The flagship crypto hit an eight-week low of $107,900 on Friday afternoon, raising concerns for its short-term rally among investors.

Crypto analyst Ali Martinez suggested that the market is starting to show signs of fatigue, with Bitcoin Dominance displaying cracks after carrying “the bulk of the bull market momentum.”

To the analyst, BTC’s current price action signals a macro trend shift, mirroring the 2021 price action and the conditions that preceded the 2021 cycle peak. At the time, the cryptocurrency hit a peak of $60,000 in April, retraced, rallied to $70,000, and set a strong bearish divergence against the Relative Strength Index (RSI) before the bear market began.

This time, Bitcoin is showing the same setup that foreshadowed the end of the last cycle, with price making higher highs while the RSI makes lower lows, Martinez explained.

Among other technical signals, the analyst highlighted that the MACD indicator had turned bearish this week. He detailed that this bearish crossover aligns with the price drop and reinforces the downside risks.

Meanwhile, he added that the recent death cross in the Bitcoin MVRV Momentum indicator “signals a macro momentum reversal from positive to negative. This is a historically reliable warning sign of cyclical tops.”

The analyst affirmed that the on-chain evidence suggests Bitcoin’s top may be in, at least temporarily, with bias shifting bearish and a risk of retesting lower support levels.

Will BTC Mirror Its 2021 Drop?

Martinez also noted that the $108,700 support is crucial for BTC’s short-term performance, as a weekly close below this area would confirm a deeper trend shift, which occurred in 2021.

After peaking in late 2021, the flagship crypto lost its local range above the $58,000 mark, which led to a retest of the macro range’s mid-zone and an eventual drop below the macro range’s lows in the coming months.

If BTC loses its immediate technical floor, the price could retest the $104,500 and $97,000 support levels, risking a drop to the mid-zone of the macro range, around the $94,000 area.

Altcoin Sherpa weighed in on the cryptocurrency’s performance, stating that Bitcoin should have strong support between the $103,000-$108,000 levels, as the 200-day Exponential Moving Average (EMA) sits around the $104,000 mark.

Related Reading

However, analyst Ted Pillows considers that $124,000 appears to be the local top. He explained that, historically, Bitcoin’s bottoms occur after a retest of the weekly 60 EMA, which currently sits around the $92,000 support zone and has a CME gap.

“In this scenario, Bitcoin will start a reversal after 3-4 weeks and a new ATH by November/December,” Ted concluded.

As of this writing, Bitcoin trades at $107,947, a 7.5% decline in the weekly timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com

Ethereum’s rally this month has been sharp, but traders are being warned to watch September closely.

Related Reading

Ether climbed about 20% since the start of August, trading at $4,745 at the time of publication. Prices even pierced $4,860 after dovish remarks from US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, a move that many in crypto see as a possible spark for more gains.

Historic September Pullbacks

According to CoinGlass, history offers a cautionary note: there have been only three cases since 2016 where Ether rose in August and then slid in September.

In 2017, Ether jumped 92% in August and then dropped 20% the following month. In 2020, August gains of 25% were followed by a 17% pullback in September.

And in 2021, a 35% climb in August gave way to a 12% slip in September. CryptoGoos, a trader on X, summed it up bluntly: seasonality in September during post-halving years tends to be negative.

$ETH seasonality in September during post-halving years is typically negative.

Will this time be different? pic.twitter.com/h9hJ40V3np

— CryptoGoos (@crypto_goos) August 22, 2025

That pattern does not mean a repeat is guaranteed. Reports have disclosed that both market structure and investor profiles are different now than in those earlier years.

In 2016 and 2020, short-term losses in September were followed by multi-month recoveries, with Ether posting upside in the final three months of those years. So while history matters, it does not decide outcomes on its own.

New Money, New Dynamics

Flows into spot Ether ETFs this month have been large enough to grab attention. Based on reports from Farside, spot Ether ETFs saw roughly $2.70 billion net inflows in August, while spot Bitcoin ETFs experienced about $1.2 billion in net outflows over the same period.

At the same time, companies that hold crypto on their balance sheets now control a sizable chunk of Ether. Reports show total Ether held by treasury companies topped $13 billion in value on Aug. 11.

Arkham reported that BitMine chairman Tom Lee bought another $45 million of Ether, lifting BitMine’s stack to $7 billion.

Those numbers change the math. Big institutional stacks and ETF demand can make sharp, short-term moves more persistent than in prior cycles.

Capital appears to be rotating; Bitcoin dominance has fallen 5% over the past 30 days to 55%, which market participants mostly attribute to funds moving into assets beyond Bitcoin.

Related Reading

What Traders Might Do Next

Traders and portfolio managers will likely keep an eye on macro signals and flow data. A softer interest rate outlook from Powell is a bullish factor for risk assets, but seasonality and previous post-August declines are reasons to stay cautious.

Featured image from Unsplash, chart from TradingView

According to CoinShares’ latest Digital Asset Fund Flows Weekly Report, inflows into crypto-products were $3.75 billion last week, the fourth-largest on record. Unsurprisingly, Ethereum was the standout after attracting the majority of capital with record-breaking inflows. Solana and XRP also experienced impressive demand, resulting in both cryptocurrencies receiving inflows exceeding 10% of the year-to-date total flows.

Ethereum’s Record-Breaking Numbers

Ethereum witnessed the most activity last week since the 2021 bull run that took many crypto investors by surprise. In terms of crypto-based products, Ethereum managed to displace Bitcoin’s supremacy last week by leading with $2.87 billion in inflows, representing 77% of the total $3.75 billion. This performance brought its year-to-date inflows to $11.094 billion, which is about 29% of total Ethereum assets under management. 

Related Reading

The intensity of institutional demand had an immediate impact on Ethereum’s market price action. Notably, the Ethereum price surged to $4,776 last week, its highest level since the 2021 bull market. 

In terms of geographical location, most of the inflows came from the United States, with $3.725 billion in inflows, more than 99% of the total. This concentration was mostly by iShares ETFs. Smaller but meaningful contributions came from Canada with $33.7 million, Hong Kong with $20.9 million, and Australia with $12.1 million. On the other hand, Brazil and Sweden posted outflows of $10.6 million and $49.9 million, respectively.

Although Bitcoin also managed to push to a new all-time price high of $124,128 last week, the leading cryptocurrency took a step back in institutional inflows. Bitcoin brought in $552 million last week. Although its year-to-date inflows are larger in absolute terms at $21.08 billion, they represent only 11.6% of its total assets under management (AuM), compared to Ethereum’s 29%.

XRP And Solana Join The Party

Although Ethereum captured most of the inflows, both Solana and XRP also attracted notable inflows that show the altcoins are gaining strength among institutional investors, despite the absence of spot crypto ETFs for these assets in the US market.

Related Reading

Solana-based products recorded $176.5 million, bringing its monthly flows to $199.2 million and its year-to-date figure to $1.05 billion. Effectively, this means that Solana-based products witnessed 89% of their total monthly inflow and 16.8% of their year-to-date inflow last week.

XRP witnessed about $125.9 million worth of inflows last week, boosting its monthly total to $148.1 million and its 2025 total to $1.238 billion. As such, XRP-based products also witnessed 85% of their total monthly inflow and 10% of their year-to-date inflow last week.

Sui, Cardano, Chainlink, and Short Bitcoin products also witnessed $11.3, $0.8 million, $1.2 million, and $4 million in inflows, respectively, last week. The only major exception was Litecoin, which diverged from the broader trend and recorded net outflows of $400,000.

Featured image from Getty Images, chart from Tradingview.com

Elon Musk, the founder of Tesla and SpaceX, has declared that his nascent political movement, the “America Party,” will embrace Bitcoin, stating that traditional fiat currency “is hopeless.”

This announcement, made on the social media platform X, comes amid a deepening public rift between Musk and President Donald Trump, primarily over the administration’s fiscal policies.

Musk’s plan to form the “America Party” appears to have been catalyzed by his strong opposition to President Trump’s massive tax and spending package, colloquially known as the “Big Beautiful Bill.”

Musk has harshly criticized the legislation as being fiscally irresponsible, at one point labeling it the “debt slavery bill.”

This disagreement has seemingly created an irreparable break between the two influential figures.

While the America Party has not yet been officially registered and lacks an official website, Musk has used his posts and retweets from supporters to outline its core ideology.

He envisions a party that champions a pro-tech, pro-free speech, and anti-regulation agenda, while adopting generally centrist policies on other issues.

Musk, a long-time supporter of cryptocurrencies whose companies SpaceX and Tesla both hold Bitcoin (BTC) in their corporate treasuries, sees the digital asset as a key part of this new political vision.

Musk has indicated on X that the party, once formally established, will not immediately field a Presidential candidate.

Instead, its initial focus will be on contesting House and Senate races, aiming to build a political foothold from the ground up.

President Trump, for his part, has not taken kindly to Musk’s political maneuvering.

In a Truth Social post on Sunday evening US time, Trump fired back, stating that Musk had gone “off the rails” and had become a “TRAIN WRECK.”

Crypto markets react to easing trade tensions

While this political drama unfolds, the broader cryptocurrency market experienced a lift on Sunday morning.

Major cryptocurrencies rose after US Treasury Secretary Scott Bessent hinted at the likelihood of upcoming trade deals being finalized before the crucial July 9 “Liberation Day” tariff deadline.

Bitcoin, the leading cryptocurrency by market value, gained over 1%, briefly surpassing the $109,000 mark.

Other major tokens also saw gains: payments-focused XRP and Solana’s SOL token both rose by over 2%, while the popular meme token Dogecoin (DOGE) climbed 3%, according to data from CoinDesk.

Ethereum’s Ether (ETH), the second-largest token, rose 1.5% to $2,550.

The tariff clock is ticking

In an interview with CNN, Treasury Secretary Bessent stated that the US is close to finalizing several trade deals ahead of the July 9 deadline.

This is the date when a temporary pause on higher tariffs, initially announced on April 2, is set to expire.

“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent said, according to Reuters.

He clarified that July 9 remains the firm deadline for negotiations; if deals are not reached, the higher tariffs announced in early April will take effect from August 1.

“We are saying this is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,” Bessent told CNN, adding that some countries were “foot-dragging” on finalizing deals.

This coercive tactic of imposing tariffs to rebalance trade relations and reduce the US trade deficit has been a central pillar of President Donald Trump’s economic policy since he took office earlier this year.

---