Steinbeck’s Take on Bitcoin: A Tale of Bears and Bulls 🐻🐂

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It was the best of times, it was the worst of times. Bitcoin, that digital mule of the modern age, had stumbled into a rough patch, like a farmer’s market on a rainy day. The price, once soaring like a hawk over the Salinas Valley, had taken a tumble, hitting the dusty ground just north of the $120K mark. Now, it clung to life around the $110K mark, where it seemed to find a momentary respite from the relentless selling.

BTC Price: Technical Analysis

By Shayan

The Daily Chart

The daily chart told a story of a beaten-down asset, one that had seen better days. It had made a new lower low, reversing its course above the $120K zone and breaking below a large ascending channel, much like a fence post that had been knocked down one too many times. The $110K area provided a glimmer of hope, a temporary stop to the market’s short-term bearish trend. But, like a tired old mule, the price hadn’t shown any signs of a strong rebound from this zone, hinting at a potential breakdown soon.

The Relative Strength Index (RSI) had been below 50 for a while now, confirming the bearish momentum. This added to the likelihood of a deeper drop in the coming weeks, possibly dragging the price as low as the $100K psychological support level-like a farmer’s last bale of hay in a drought-stricken year.

However, this grim forecast could change if the market showed a significant bounce from the $110K level soon, and the RSI rose above 50, indicating a shift in momentum. But for now, the bears were in control, and the bulls were left to lick their wounds.

The 4-Hour Chart

The 4-hour chart painted a picture of a market in decline, with the price making lower highs and lows inside a steep descending channel. It had briefly broken below the $110K support level, only to rise again, like a stubborn mule refusing to go down without a fight.

With the momentum also being bearish, as indicated by the RSI, the price was more likely to either continue respecting the channel and decline further, or even begin a short-term crash by breaking the channel to the downside. This could lead to a move toward the $104K bullish fair value gap, or a revisit of the $100K level if things got really bad. Either way, BTC seemed poised for more bearish price action, unless it managed to break above the channel and turn the tide.

Onchain Analysis

Exchange Whale Ratio (30-day moving average)

The Exchange Whale Ratio chart, a tale of the big players in the market, highlighted Bitcoin’s price action against the 100-day moving average of the whale ratio across all exchanges. The whale ratio, a measure of the proportion of large inflows to exchanges coming from whales compared to overall inflows, had a history of signaling increased selling pressure when it was high.

In recent months, the whale ratio had started a sharp rebound, moving higher alongside the latest price peak. This rise could signal a shift, with whales starting to exert more influence again, potentially preparing to offload positions. The signal pointed to a possible increase in short-term volatility if whale selling accelerated.

If the ratio continued to climb while Bitcoin hovered near $110K, the market might face stronger resistance and corrective moves, like a farmer facing a sudden storm just as he’s about to harvest his crops.

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2025-08-27 15:38