Bitcoin experienced a significant downturn following the Wall Street open on August 29, reaching its lowest price since July 8 and moving towards the $108,000 mark. This new multiweek low was propelled by large sell-offs from whales, particularly noticeable on Binance, leading to around $540 million in crypto liquidations reported. Market analysts indicated that the price had entered a key reversal zone, an area of former consolidation that warrants close monitoring. Although Bitcoin failed to reclaim $112,000 as support, some traders noted a bullish divergence in the relative strength index (RSI), suggesting the potential for an upswing. Despite these indicators, a lack of optimism prevailed amid concerns over US inflation data and its impact on interest rates, especially with the Federal Reserve's potential decision to cut rates in September. This precarious situation raises concerns about future market movements, underscoring the importance of upcoming economic indicators.

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