Bitcoin Slides More Than 6% as Whales Unload Billions
BTC/USD Bears Take Control After $116K Rejection
Bitcoin lost roughly 6.50% of its value over the last 7 days, following a rate cut by the Fed and increased distribution by the whales. Although the rate cut was perceived as bullish for crypto at first, the effect was short-lived and was followed by heavy selling.
According to data from CryptoQuant, whales unloaded 147,000 BTC in the last 30 days, equivalent to roughly $16.5 billion at current prices. This massive wave of sell volume is somewhat offset by institutional buying as the accumulation trend continues for corporations.
Strategy (formerly known as MicroStrategy) recently acquired 850 BTC, solidifying its Top 1 spot in the list of Bitcoin treasury companies. Strategy currently owns 639,835 BTC and is a long way ahead of Mara Holdings, which comes in second place, with a total stash of 52,477 BTC. This week, Metaplanet (Japan) acquired 5,419 BTC, raising its total holdings to 25,555, currently in 5th place.
Institutional accumulation is likely to continue, while whale selling could fizzle out as soon as enough profits are locked in. At some point, Bitcoin’s price will become appealing again to the same players who sold earlier. When whales, corporations, and ETFs all start accumulating, we will really see the next leg of the uptrend.
On Wednesday, Bitcoin ETFs just saw the first green day after two days of outflows: $241 million came in, while the two previous days saw outflows of $363 million (Monday) and $103 million (Tuesday).
Chart Analysis – BTC/USD
After the failed break of $116K resistance, Bitcoin retreated into the support at $112K and eventually broke it, currently trading at $109,500. The short-term control belongs to the bears, and we will have to see a significant increase in buy volume for the situation to change. The long-term bullish trend line is also broken, marking another victory for the bears.
The next support is the low seen at the beginning of September, around $107,500. If the bulls don’t manage to retake $110K, which is a key psychological level, Bitcoin is likely headed towards the mentioned low and $105K.
The Relative Strength Index (RSI) is moving south without being oversold, which suggests that lower prices are coming. In a bullish scenario, if $112K becomes support again, we could expect a move into $116, but this will depend on several factors, such as whale activity and possibly macroeconomic tailwinds.
