Bitcoin News Today: Bitcoin's Wallets Unite in Sell-Off, Forcing Battle at $105K

Bitcoin’s price retreat has intensified as fear-driven selling dominates the market, with on-chain data revealing broad distribution across all wallet cohorts and key technical support levels under pressure. The cryptocurrency, which briefly rose to a record $124,176 in early August, has since fallen to around $110,600, amid signs of profit-taking and seasonal headwinds. On-chain analytics indicate that mid-sized and large holders have been the primary contributors to the decline, while smaller retail investors have shown mixed accumulation patterns. This synchronized behavior across wallet sizes has exacerbated downward momentum, as the market remains in a distribution phase.

Glassnode data highlights that all BTC wallet groups have shifted into distribution, with the 10–100 BTC cohort leading the trend. The coordinated sell-off reflects broader capital rotation, particularly with some large holders moving assets to Ethereum. Analyst Boris Vest noted that while smaller holders have been accumulating since the peak, the 10–100 BTC group transitioned to net sellers after the $118,000 level, indicating heightened bearish sentiment among mid-sized investors. Meanwhile, the 100–1,000 BTC group remains split, with accumulation and distribution balancing around $105,000, marking it as a critical support level ahead of deeper corrections.

Realized price data further underscores the fragility of the current structure. One-to-three-month holders are anchored at $111,900, while three-to-six-month and six-to-12-month cohorts are supported at significantly lower levels of $91,630 and $89,200, respectively. The widening gap between these cohorts highlights a concentration of short-term positions near recent highs, versus deeper pockets of support closer to the $90,000 range. A breakdown below $105,000 could trigger cascading liquidations, especially given the lack of dense cost bases between current levels and the next major demand zone.

Seasonal patterns are compounding the bearish technical setup, as Bitcoin typically weakens between August and September. This year’s “ghost month,” spanning from August 23 to September 21, has historically coincided with declines averaging 21.7% since 2017. This period often sees elevated profit-taking and reduced risk appetite, particularly in Asia. The current pullback aligns with these tendencies, as the market digests the aftermath of the Jackson Hole rally and grapples with ETF enthusiasm cooling off.

Futures and options markets reinforce the cautious outlook. Bitcoin futures open interest has surged to an all-time high of 762,700 BTC, signaling sustained trader engagement despite the 10% price correction from its peak. However, the neutrality of the 8% annualized premium and the 10% put premium over calls reflect a market divided between optimism and pessimism. The recent $284 million in liquidations of long positions further highlights the fragility of leveraged positions, especially as traders adjust to shifting sentiment and structural imbalances in distribution.

Despite the near-term volatility, Bitcoin’s long-term fundamentals remain intact. Institutional adoption continues to accelerate, with U.S. spot ETFs holding 1.3 million BTC and corporate entities like MicroStrategy accumulating at a structural level. The Trump administration’s recent executive order allowing 401(k) retirement accounts to invest in Bitcoin has opened access to a potential $8.9 trillion capital pool, signaling a broader acceptance of the asset as a core institutional holding. While this development is expected to reduce volatility and provide long-term support, the market must first navigate near-term liquidity challenges and the risk of a short-term pullback toward $92,000–$89,000.

Source: [1] Bitcoin holders 'distribute' as $105K becomes BTC's last stronghold (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold) [2] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives) [6] The hidden signal in Bitcoin's 439k daily transactions and falling big trades (https://cryptorank.io/news/feed/0076a-the-hidden-signal-in-bitcoins-439k-daily-transactions-and-falling-big-trades) [7] Q3 2025 Bitcoin Valuation Report (https://www.chaincatcher.com/en/article/2199982)