Bitcoin News Today: Bitcoin Faces Extended Sell-Off as Whales Miners and LTHs Offload Holdings

Bitcoin is facing a broad-based selling pressure as major holders, miners, and long-term investors begin to take profits, raising concerns about a potential extended correction in the coming months. On-chain data from CryptoQuant highlights the third major wave of whale selling since mid-2024, following the July 14 all-time high of $123,300. These whales—large holders with the ability to influence prices—have started moving substantial amounts of Bitcoin toward exchanges, with one wallet identified as having been dormant for over 14 years now transferring around $450 million worth of Bitcoin [1].

This trend is not limited to whales. Miners, who had briefly reduced selling in July, are once again increasing outflows. Such activity typically follows price highs, as miners seek to cover costs or secure profits. The combined selling from these groups is contributing to a broader "cooling phase" in the market, a pattern often seen in mature bull markets [1].

Long-term holders, historically a stabilizing force, have also turned net negative. This shift came after Bitcoin hit the $120,000 resistance level, a key psychological threshold. Analysts interpret this as a sign that LTHs are locking in gains, which may further pressure the price [1].

Meanwhile, the Coinbase Premium—the price difference between Coinbase and Binance—has turned negative, signaling weaker demand from U.S. investors. This metric often reflects broader selling pressure and reduced buying interest, adding another layer of concern for the market [1].

The MVRV ratio, a key indicator used to identify potential market tops, is also approaching peak levels. CryptoQuant’s Yonsei notes that if historical trends hold, late August could serve as a turning point, potentially leading to a correction or consolidation phase [1]. Options traders have already positioned for this scenario by buying put options at key support levels of $80,000, $95,000, and $100,000, expecting a 10–30% price drop over the next month [1].

Despite the bearish signals, not all analysts are pessimistic. Charles Edwards of Capriole Fund argues that Bitcoin is currently undervalued based on his Energy Value model, which ties the asset’s intrinsic worth to the energy costs of the mining network. His view is that Bitcoin is trading well below its fundamental value [1].

CryptoQuant also anticipates renewed accumulation and a potential breakout to new highs in the fourth quarter, citing historical trends that show the strongest median returns—52%—typically occur during this period. However, the immediate outlook remains uncertain, with market observers bracing for a challenging two months ahead [1].

Overall, the convergence of whale selling, miner outflows, weakening U.S. investor demand, and a near-peak MVRV ratio suggests the current correction could persist for several months. While institutional liquidity and growing adoption may help cushion the fall, the market is clearly entering a phase where caution is warranted [1].

Source: [1] Four Factors That Could Crash the Bitcoin Price in August, CoinCodex (https://coincodex.com/article/70791/four-factors-that-could-crash-the-bitcoin-price-in-august/)