Bitcoin price drops below $108K but on-chain metrics signal strength

Bitcoin price has fallen below $108,000 but on-chain and trading data suggest the market is holding firm, with institutional demand and technical signals pointing to a resilient setup.

Summary

• Bitcoin trades at $107,820, down 13% from August’s all-time high.
• Spot and derivatives volumes jumped, showing stronger market activity.
• On-chain data and technical indicators highlight structural support.

Bitcoin (BTC) slipped to $107,820 on Monday, marking a 1% decline in the past 24 hours. The asset has traded between $107,414 and $113,220 over the past week, leaving it down 4% in seven days and 5.4% in the last month. From its Aug. 14 peak of $124,128, Bitcoin now sits 13% lower.

Market activity has increased despite the price pullback. Spot trading volume rose 30% in the last day to $30.6 billion, while derivatives data from Coinglass showed a sharp rise in participation.

Futures volume climbed 44.55% to $58.42 billion and open interest edged higher to $80.41 billion. This combination suggests new positions are being opened, rather than old ones being closed, pointing to higher conviction among active traders.

On-chain signals show strong support

According to a Sept. 1 analysis by CryptoQuant contributor XWIN Research Japan, two structural indicators, Delta Cap and the Coinbase Premium Gap, continue to reinforce Bitcoin’s underlying strength.

Delta Cap, which is currently $739.4 billion with an implied price of $108,900, is determined by the difference between Realized Cap and Average Cap. In the past, this metric has served as a cycle floor, helping to identify periods when consistent capital inflows supported the value of Bitcoin.

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The fact that Bitcoin’s spot price is comfortably above Delta Cap suggests that investors remain confident despite short-term corrections,

The Coinbase Premium Gap, which compares the prices of Coinbase and Binance, is currently at +11.6. A positive premium indicates stronger demand from U.S. institutions willing to pay more for Bitcoin. In previous cycles, sustained premiums often preceded upward legs, suggesting new institutional accumulation.

Bitcoin price technical analysis

The BTC market is consolidating just above a key psychological support at $107,000. On the daily chart, Bitcoin is moving along the lower band of its Bollinger range, suggesting that it is in near-term oversold conditions.

Bitcoin daily chart. Credit: crypto.news

The relative strength index is close to neutral but leans lower, so if buying momentum picks up, there could be a bounce. The MACD signals are flattening, which often precedes a potential reversal, but they are still a little bearish.

A sustained move above $110,000 may open the door to $113,000 and eventually retests around $118,000, but a break below $107,000 increases the likelihood of a decline toward $104,000.

Read more: Investors withdraw lawsuit against Strategy over Bitcoin accounting practices

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