Here's the latest update on the Bitcoin market pullback as of late August 2025:

1. Flash Crash Sparked by Whale Selling

Over the weekend of August 23–25, markets surged as Fed Chair Powell hinted at potential rate cuts, pushing Bitcoin near $117,200.

However, a large whale sale of 24,000 BTC triggered a "flash crash," resulting in forced liquidations totaling around $838 million, and Bitcoin dropped to roughly $110,500.

MarketWatch detailed a sharp sell-off and noted the whale transferred much of its holdings and continued to offload, deepening the decline.

Equiti confirmed the mass sell-off, citing nearly $900 million in leveraged positions being wiped out.

2. Technical Weakness, Support Levels Under Pressure

Bitcoin has retreated roughly 12–13% from its mid-August peak of ~$124,000 to areas around $108–109K.

Key supports are being tested:

$110–112K, now lost.

$108K, acting as a crucial inflection point—if breached, further downside toward $100K or even $93K–95K may loom.

AInvest sees the pullback as a potential strategic entry point for long-term investors, backed by institutional participation and ETF inflows. Projections for end-2025 range from $180K to $250K.

CoinDCX suggests:

If $110–112K support holds, a rebound to $120–125K is possible.

If not, expect consolidation or drift down toward $103–108K.

Meanwhile, Weiss Ratings predicts a temporary continuation of the dip—peaking interest between September 13–20, with significant volatility around the Fed’s actions.

3. Sentiment, Retail Behavior, and Broader Market Trends

Rising “buy the dip” chatter across social media may paradoxically indicate more downside ahead—true bottoms often coincide with widespread retail disinterest or fear.

According to TradingView, 95 of the top 100 cryptocurrencies are down, with Bitcoin down ~2.7% to around $110,125, marking a natural correction following gains.

4. Macro Factor: Fed Signals and Rate Cut Uncertainty

Though Powell opened the door to potential rate cuts, continued macro uncertainty has kept investors cautious.

A favorable rate cut might spark recovery, but failure to deliver enough dovish guidance could lead to continued underperformance.Indicators that historically welcome pullbacks into September are also signaling caution.

Summary: Is This Just a Correction or Something More?

FactorWhat It MeansWhale selling & liquidationsTriggered sharp corrective moves and stopped momentum.Technical breakdownsSupport at $110–112K has failed; $108K now critical.Institutional contextLong-term demand remains via ETFs and corporate holdings.Sentiment“Buy the dip” trends may signal premature optimism.Macro backdropFederal Reserve decisions in September will be pivotal.

What to Watch Next

Support test around $108K–110K: Holding this zone could renew confidence, failure may lead to $100K–$105K levels.

Fed developments in mid-September: Markets may rally into rate-cut expectations—or face disappointment if signals are tepid.

Institutional flows and ETF behavior: Continued inflows could help stabilize price; sustained outflows add pressure.

Sentiment shifts: Monitor fear & greed metrics and social media trends for broader market mood.