The answerto "Why is Bitcoin going down today?" lies in a perfectstorm of technical breakdowns, massive whale selling, and overleveragedpositioning that has sent Bitcoin (BTC) price tumbling toits lowest levels in seven weeks. Thecryptocurrency has already tested levels below 109,000 dollars, and although ithas rebounded above local support, the newest BTC price predictions and mytechnical analysis suggest that at this point Bitcoin may still have room forfurther declines.Bitcoin Price Today:Current Market DataAs of today(Tuesday), August 26, 2025, Bitcoin trades at $110,185, down 2.83% fromyesterday and marking an 11% decline from its August 14 all-time high of$124,533.Bitcoin'sdecline intensified after a major whale dumped 24,000 BTC worth over $2.7billion, causing the cryptocurrency to briefly fall below $109,000 on Monday.The selling pressure erased all gains from Federal Reserve Chair JeromePowell's dovish Jackson Hole speech, which had initially pushed Bitcoin above$117,000 on Friday.KeyBitcoin price metrics:Current price: $110,185 (August 26, 2025)24-hour change: -2.83%Weekly decline: -7% since Powell's speechMonthly correction: 11% from $124,533 ATHMarket cap impact: Nearly $200 billion wiped from crypto marketsThe sellofftriggered the largest liquidation event of the year, with $900 million inleveraged positions getting forcibly closed across crypto derivativesmarkets.Why is Bitcoin Price GoingDown Today? 5 Main Reason1. WhaleSelling Triggers Flash CrasheToroanalyst Simon Peters confirms the primary catalyst: "Bitcoin has slumpedlower and is now trading at $110,000 after a whale reportedly sold over 24,000bitcoin (approximately $2.4 billion) on Sunday triggering a flash-crash".This whale, likely an early Bitcoin adopter from the "Satoshi era,"had purchased Bitcoin at around $10 or lower, making current prices extremelyprofitable for exit strategies.Yesterday saw one of the largest #Bitcoin long liquidation events since Dec 2024, with over $150M in longs wiped out as price moved lower. pic.twitter.com/okCNBMWl0j— glassnode (@glassnode) August 25, 20252. TechnicalBreakdown Confirms Bearish ShiftBitcoin'stechnical outlook deteriorated significantly, with the cryptocurrency fallingbelow the 100-day simple moving average for the first time since April 22,2025. The price also dropped below the Ichimoku cloud, indicating a bearishshift in momentum. These dual breakdowns mirror the February pattern thatpreceded a deeper selloff to $75,000.3. OverleveragedPositioning Gets SqueezedThe sharpmove resulted from overleveraged positioning particularly followingrecent run-ups. Bitcoin traders faced $277 million in forced liquidations,while Ethereum saw $320 million wiped out. Total liquidations across allcryptocurrencies exceeded $900 million, with 90% being long positions bettingon higher prices.4. MarketStructure Reveals FragilityJamieElkaleh, Chief Marketing Officer at Bitget Wallet, explains the deeper issue:"Bitcoin's flash crash highlighted the market's ongoing liquiditychallenges. ETF outflows and weaker on-chain activity have left order booksthin, meaning large transactions, like August's $2.7B whale sale, can quicklytrigger cascading liquidations in over-leveraged futures markets."5. SeasonalHeadwinds Add PressurePetersnotes an ominous pattern: "September tends to be a month of the year, moreoften than not, which has seen a negative performance for the bitcoinprice." Historical data shows September brings the weakest returnsfor BTC with average losses of 3.77% during bull market years.You mayalso like: Bulls Target$140K BTC as Crypto Rally AcceleratesBitcoin Technical AnalysisTargets $100KBased on mytechnical analysis, since breaking the trendline drawn from the April lows, bearshave temporarily taken control of the BTC chart. At the moment, Bitcoin istesting the support zone located between 110,000 and 112,000 dollars. If thiszone is decisively breached, in my view, Bitcoin could open the way toward the200 EMA, just below 104,000 dollars, and ultimately to the 50% Fibonacciretracement, which coincides with the psychological 100,000-dollar level.Ethereum And XRP PriceDown: Altcoins Are Falling TooWhileBitcoin suffered significant losses, other major cryptocurrencies showed variedperformance. Ethereum(ETH) declined 8% over 24 hours but continues trading above its100-day SMA and Ichimoku cloud, maintaining relative strength.XRPheld better ground, remaining above its 100-day moving average though stuckwithin the Ichimoku cloud, a zone of uncertainty. Solana (SOL) alsomaintained its position above key technical levels, suggesting potentialoutperformance if risk appetite returns.Thedivergence suggests potential rotation from Bitcoin to altcoins, withanalysts expecting Ethereum and SOL to outperform BTC if markets stabilize.Bitcoin Price Prediction:Institutional vs Retail DivideBearish Scenarios DominateTechnicalanalysts point to several downside targets if current support levels fail:$105,300 (38.2% Fibonacci retracement)$100,000 (psychological support and 200-day SMA)$75,000 (aggressive bear target, echoing Peter Schiff's prediction)Marketpricing shows 35% implied odds for Bitcoin to revisit $100,000 bySeptember-end, up from 20% last week.However,there are also voices suggesting that Bitcoin’sprice could rebound toward $200,000 before the end of the year. Such anambitious forecast has been presented, among others, by Standard Chartered."The weakness in the near-term conviction among retail traders has not recalibrated the conviction of institutional and sovereign buyers, who are quietly using this dip period to scale in and extend their BTC exposure," LeoZhao, Investment Director at MEXC Ventures, commented. "Bitcoin now sits at a critical inflexion point, where it could enter a period of consolidation between $110,000 and $120,000. Thelong-term picture, however, remains underpinned by institutional accumulation. Bitcoin retains the structural foundation for anotherattempt at record highs of $130,000 before the EOY."Institutional Accumulation ContinuesDespiteretail liquidations, Elkaleh notes a key divergence: "The split betweenretail liquidations and institutional accumulation reflects a market that ismaturing. Retail traders, often exposed to high leverage, are forced out duringcorrections, while institutions use these episodes to accumulatestrategically."MicroStrategy'scontinued buying exemplifies this trend, with the company havingaccumulated over 628,000 Bitcoin worth more than $71 billion at current prices.Their strategy of buying near highs demonstrates institutional confidence inBitcoin's long-term trajectory.Economic Data CouldProvide ReliefPeters seespotential catalysts ahead: "There may be some hope for the crypto marketsto mark a comeback this week though, as we have more economic data in the formof GDP figures, unemployment claims and PCE inflation data coming out from theUS. A slowing economy, higher unemployment claims and cooling inflation mayboost cryptoasset prices."FAQ: Bitcoin Price DeclineWhy did Bitcoin crashbelow $110K today?A whalesold $2.7B worth of Bitcoin, triggering massive liquidations and technicalbreakdowns below key moving averages.What are the key supportlevels for Bitcoin?$105,390(38.2% Fibonacci) and $100,928 (200-day SMA) represent critical support zones.Could Bitcoin fallfurther?Yes. Technicalpatterns suggest potential drops to $100K or lower if current supports fail,with some targeting $75K.Are institutions stillbuying Bitcoin?Yes. Companieslike MicroStrategy continue accumulating despite volatility, suggestinglong-term confidence remains intact.This article was written by Damian Chmiel at www.financemagnates.com.