Bitcoin Falls Below 108,500 USD: Opportunity or Signal for Deeper Adjustment?

In the past 24 hours, Bitcoin – the largest cryptocurrency in the world – has slipped below the 108,500 USD mark, the lowest level in nearly two months. This move has left many investors fearing that a stronger correction may be beginning. However, according to analysis by veteran trader VirtualBacon, this drop is not necessarily a bad signal, but rather could be an opportunity to “buy the dips.” Why is this fall different? VirtualBacon believes that the current price of BTC coincides with the 20-week moving average (20W SMA) – a very reliable “buy the dips” zone in previous cycles, such as in 2017, 2021, and now in 2025. He emphasized: As long as Bitcoin stays above the SMA 50-week line around 95,000 USD, the long-term bullish trend remains safe. Currently, the market has not shown any signs of a true “cycle peak”. The fear largely comes from sentiment rather than objective data. Are Bearish Signals Really Worrisome? This decline has raised a wave of warnings: RSI divergence, weakening momentum, and some even compare it to the cycle of 2021. But VirtualBacon rejects this viewpoint: RSI divergence usually indicates a period of accumulation or short-term sideways movement, but it does not mean the market has peaked. The slow down in momentum on the weekly frame merely reflects natural correction, not a sign of the market breaking its trend. Comparing it to 2021 is inappropriate, as Bitcoin has never peaked according to the same model. 2013 was a “double pump”, 2017 was a “blow-off top”, while 2021 formed a “rounded double top”. Each cycle is different. The Macro Platform Still Supports the Bullish Side The key factor reinforcing confidence in the positive scenario is the macroeconomic aspect. The Federal Reserve (Fed) is predicted to cut interest rates on September 17, with a probability of up to 87%. A loose monetary policy typically paves the way for new capital to flow into risky assets, including Bitcoin. In addition, important indicators that have previously warned of a “cycle peak” such as Pi Cycle Top, Mayer Multiple, and Fear & Greed Index have not yet signaled excessive heat. This indicates that BTC still has room for growth. “Buy the Dips” or “Sell Off”? According to VirtualBacon, BTC holding at a strong support zone is an accumulation opportunity, not a time to panic sell. Even CZ – the founder of Binance also urges the community: “Don’t sell when the market falls.” He set clear boundaries: If BTC holds above 95,000 USD, the uptrend remains intact. If this level breaks, then it is necessary to reconsider the outlook. Conclusion As of the time of writing, Bitcoin is trading around 108,453 USD, falling 1.5% in 24 hours, with a market cap of 2.16 trillion USD. While many people are panicking due to fears of a “market peak,” technical analyses and macro factors indicate that this decline is likely just a natural adjustment phase. For long-term investors, this could be the opportunity to “buy the dips” before the next wave of increases.