Bitcoin Drops 1.6% to 105,658 Dollars as Whales Exit Long Positions

Bitcoin's recent price movements have sparked concern among analysts, with the cryptocurrency failing to maintain critical support levels. Crypto analyst Justin Bennett noted that Bitcoin struggled to sustain its position at the 106,600-dollar mark, leading to a potential retest of the 100,000-dollar range. Bennett suggested that Bitcoin might experience a period of consolidation, followed by a potential uptick due to retail investors’ activities over the weekend. However, he warned that if Bitcoin fails to stably move above the 106,000 to 107,000-dollar levels in the long term, it could be at risk of a downward retraction.

Bennett's cautious approach is reflected in his strategy, where he would refrain from buying at the 106,600-dollar level after its breach. He considers opening a short position only if a suitable recovery manifests. Bennett highlighted the need for caution when considering new buy positions, indicating that unless there is a clear and stable trend in price levels, investing might not be advisable.

The analyst also observed a shift in the Bitcoin market dynamic, noting that large portfolio holders, or “whales,” have been exiting long positions to form short ones. This shift has increased selling pressure, contributing to Bitcoin’s weakening. Bennett explained that whale actions can create risks for smaller investors and lead to sudden price volatility in the crypto market. This scenario has been evident throughout recent trading days where significant sell-offs were sparked by whale maneuvers.

Bennett drew attention to the market dominance rate of Tether (USDT.D), suggesting it might signal bearish trends for Bitcoin. An increase in USDT.D often indicates investors shifting from crypto assets to stablecoins, potentially strengthening selling pressure. An approach towards a 5% threshold in USDT.D post-weekly closure could suggest sustained selling pressure for Bitcoin. The prevailing market indicator proposes that should Tether’s dominance see an increase, a downward trend in Bitcoin and other digital assets might ensue. The impact of these movements was felt in Bitcoin’s price, which fell to 105,658 dollars at the time of writing, marking a 1.6% decline in 24 hours. Meanwhile, Tether’s dominance rate was recorded at 4.79%.

Bitcoin's recent attempt to surpass the 108,000-dollar resistance level ended in failure, leading to a sharp pullback and renewed market caution. The cryptocurrency briefly moved above this range high but quickly reversed, causing a significant decline. Market watchers attribute this move to both technical patterns and macro-driven sentiment shifts. With bulls unable to hold the breakout, traders are once again treating this move as a deviation within a broader range, shifting attention to whether Bitcoin can sustain further recovery or remains stuck in sideways movement.

Crypto analyst Daan Crypto Trades noted that the Bitcoin price pierced above the 108,386-dollar level on the 4-hour chart before sharply retreating. The chart shows a typical deviation structure, where the price briefly escapes a range high only to snap back inside. Daan noted that this was a clean technical trigger point, but it lacked lasting momentum. He pointed out that recent macro headlines likely contributed to the rejection. These news developments, although not entirely new, had been building up over the past 48 hours. The failure to hold above the 108,000-dollar mark signals a lack of bullish control at this key level.

The sell-off has brought Bitcoin back into its established trading zone, which spans from approximately 99,600 to 108,000 dollars. Daan emphasized that bulls “had no business” revisiting lower levels if the breakout were genuine. With the price back in range, traders are expected to remain cautious. He added that unless Bitcoin convincingly reclaims and closes above 108,000 dollars, long positions remain risky. This failed breakout acts as a warning for those considering aggressive exposure.

Market analyst Crypto Patel highlighted shifting sentiment indicators. He observed that Bitcoin’s funding rate has flipped negative again, a pattern seen before major rallies. The 72-hour moving averages also bounced from oversold levels, giving bulls some hope. Despite that, he pointed out that the funding rate remains below the “overbought” level, suggesting there’s still upside potential. These signals hint at the possibility of another bounce, provided the price action confirms it.

Analyst Ali Martinez warned that Bitcoin needs to stay above 108,300 dollars to maintain upward momentum. Failure to do so may result in a further decline to 107,000 dollars. Wise Crypto cautioned that if Bitcoin fails to break and hold above 110,000 dollars this week, it may enter a bearish phase, mirroring the post-2021 market conditions. Veteran trader Peter Brandt warned of a 75% Bitcoin crash as BTC breaks key support, adding that geopolitical risks and weak momentum add pressure. Brandt started a debate in the crypto space by suggesting Bitcoin could be mirroring its 2022 cycle and potentially face a 75% correction. However, other analysts reject claims that BTC will repeat the 2022 collapse, citing different market conditions and investor sentiment.

Overall, the market remains cautious as Bitcoin oscillates within a defined range, awaiting a clear breakout or breakdown. Until the 108,000-dollar level is reclaimed with volume and conviction, crypto traders remain hesitant to fully re-enter. The current market sentiment and technical indicators suggest that while there is potential for a bounce, the risk of further decline remains significant.