The crypto market has entered its sixth consecutive day of decline following the latest U.S. Producer Price Index (PPI) report, triggering fears that Bitcoin (BTC) could tumble below $100,000 for the first time in three months. Both short- and long-term holders are retreating, and all major BTC indicators are flashing red.
Why is Bitcoin Falling?
After weeks of anticipation for a potential altcoin season, investor optimism was crushed by the PPI numbers. As a result, Bitcoin slipped under $117,000 and is now hovering around $115,000. Without a strong rebound, fear is outweighing hope in the market.
Blockchain analytics firm Santiment reports that overall market sentiment has turned sharply negative. Both short- and long-term holders are capitulating, with $5.69 billion worth of BTC moved to exchanges in just two days, a worrying sign for Bitcoin’s stability above the critical $100,000 mark.
Volatility Compressing: Calm Before the Manipulation?
The 30-day volatility index is currently sitting at very low levels. The last time we saw such a drop was in June 2024. Historically, when volatility falls this low, major players usually finish positioning and wait for a… pic.twitter.com/B6EGZ1he75
— Boris. (@Fundingvest) August 19, 2025
Can Bitcoin Reverse the Trend?
Analysts say a rebound is still possible, but it would require fresh liquidity to return to the market, usually driven by positive macroeconomic news or a surge of institutional inflows.
Technical signals remain weak: Bitcoin’s Relative Strength Index (RSI) has been trending downward for over a year, suggesting reduced volatility but also greater susceptibility to global economic conditions.
With investors in a wait-and-see mode, attention now turns to September, when markets expect potentially positive catalysts such as a possible Federal Reserve interest rate cut.
Key Support Levels: Where Could BTC Find a Floor?
Based on the gap between Bitcoin’s market value and realized price, analysts identify three major support zones:
$112,000 — Bitcoin still holds above this level for now.
$91,400 — a deeper correction level.
$70,000 — a worst-case scenario, representing a $50,000 drop from recent all-time highs.
A slide toward these lower supports could usher in a prolonged bear market, especially as institutional players like corporate treasuries and Bitcoin ETFs hold significant exposure to BTC.
For now, the market’s fate hinges on macroeconomic conditions and liquidity inflows, leaving investors wondering: Is this just a bear trap or the start of something bigger?
