Bitcoin and Ether pulled back from mid-August highs, creating tactical entry windows for disciplined buyers. Data, flows and on-chain signals should guide timing.
Bitcoin fell from a mid-August peak around $124,457 to about $110,200, down roughly 11% from the all-time high. Ether also retreated from new highs near $4,950. This article explains what happened, why prices moved, and how traders and allocators can assess whether to buy the dip in the short term.
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So, What Happened?
Bitcoin surged to a new record in mid-August just above $124k before the market reversed. Over the weekend a single large wallet sold roughly 24,000 BTC, triggering a rapid $4,000 intraday drop that wiped billions from market value.
The coin traded below $110k and saw long liquidations above $500m in aggregate.
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Spot bitcoin and ether exchange-traded funds recorded large withdrawals over several sessions, totaling about $1.4–$1.9B depending on the dataset.
Ether peaked around $4,950 before pulling back. Volume spiked on the sell-off while order books thinned at the highs, magnifying price moves.
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Why It Moved: Short Drivers
Two immediate factors explain the drop. First, a concentrated liquidity shock from the 24,000 BTC sale overwhelmed thin order books, producing outsized slippage and rapid price declines.
Second, institutional flows swung negative, with spot Bitcoin and Ether funds posting roughly $1.9B of withdrawals over four sessions, signaling short-term risk aversion. Market commentary from the Federal Reserve reduced the probability of near-term rate cuts, prompting rebalancing across risk assets.
Short-term technicals printed lower momentum on the 14-day RSI, increasing the likelihood of a correction. Ethereum offered deeper liquidity, softening some selling briefly.
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Is This A Buy? Practical Checklist
For long-term allocators:
- size exposure to match risk tolerance
- prefer dollar-cost averaging rather than lump sums
- watch ETF net flows and large wallet movements
- monitor on-chain accumulation versus distribution
- set clear stop levels
For traders watch out for a clear intraday reversal, rising bid volume, and confirmation from ETF inflows before adding risk, and confirm macro signals.
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Conclusion
The dip creates tactical entry points for disciplined buyers who follow data. If you lack a checklist and risk controls, avoid impulse buys; wait for confirming flows, on-chain accumulation first.
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