Bitcoin slips to $108,000, but VirtualBacon claims it’s the perfect dip purchase opportunity.
Veteran traders say Bitcoin’s 20-week SMA has repeatedly acted as a reliable support zone.
Macro Backdrop Strong: Liquidity could boost Bitcoin’s next rally, with hopes of reducing the Fed rate.
Bitcoin, the world’s largest cryptocurrency, has scored its lowest point in nearly two months, falling below $108,500 in the last 24 hours. Many traders fear that this decline marks the onset of a deeper correction.
However, veteran Crypto Trader’s VirtualBacon believes the move is not about the sharp dip of Bitcoin, but about the opportunity to buy DIP.
Why does this dip seem different
According to VirtualBacon analysis, current levels of Bitcoin are consistent with the 20-week Simple Moving Average (SMA), a line that has consistently functioned as a “dip-by-zone” in past cycles, such as 2017, 2021 and now 2025.
He adds that bull markets are safe as long as BTC is above the 50-week SMA of nearly $95,000.
Despite the noise about the top of the market, he insists that true cycle top signals have not yet appeared. “We are far from happiness,” he said. He emphasized how fear drives panic more than actual data.
Decomposes bear signals
The decline caused a wave of bearish calls, along with a warning about a comparison to the 2021 cycle. However, VirtualBacon dismisses these signals as misleading.
Daily RSI divergence usually suggests short-term integration rather than the top of the market. Similarly, weekly slowdowns indicate weak rallies, but not necessarily at their peak.
Regarding the 2021 chart overlay, we remind traders that Bitcoin has never been toped twice in the same way. From the 2013 double pump to the 2017 blow-off top to the 2021 round double, each cycle is unique.
Fundamentals support the Bulls
It is the macro background that reinforces his views. The Federal Reserve is expected to cut interest rates on September 17th, with odds at 87%. Easier financial terms could boost fresh liquidity into risky assets like Bitcoin.
Additionally, VirtualBacon refers to tools that historically signal the top of the cycle, such as the PI cycle top indicator, Mayer Multithip, and the Fear & Greed Index. He suggests that none of them emphasize that Bitcoin is near overheating.
7/X Meanwhile, the actual cycle top tool is quiet:
pi cycle top → up to $188k+
Bultioushier multiplex → far from overheating
🔹fear & greed→neutral 50We are miles away from happiness. pic.twitter.com/rbbfyne39z
– virtualbacon (@virtualbacon0x) August 29, 2025
I’ll buy a dip
In combination with BTC retention in the main support zones, VirtualBacon views DIP as an opportunity for accumulation, not a sales signal. Even Binance’s founder CZ has urged traders to “stop selling dips.”
He sets a clear line in the sand at $95K. As long as Bitcoin stays above it, Bull Run is alive.
To date, BTC has traded around $108,453, reflecting a 1.5% decline over the past 24 hours, with a market capitalization of $2.16 trillion.
