Bitcoin News Today: Institutional Whales Shift Stacks as Bitcoin Faces Bearish Crossroads

Bitcoin has retreated to levels seen before Federal Reserve Chair Jerome Powell’s recent dovish remarks, reinforcing a bearish technical outlook for the cryptocurrency. At the time of the analysis, Bitcoin was trading near $112,000, having previously reached a peak of approximately $117,440 following Powell’s speech on rate cut expectations. The pullback from this high suggests a continuation of downward momentum, with technical indicators such as the Guppy Multiple Moving Average (GMMA) and the MACD histogram pointing to bearish confirmation. On the daily chart, the retrace aligns with the resistance defined by a previous bullish trendline from April lows, signaling a potential trend reversal. The 200-day simple moving average near $100,000 represents a key support zone, while a recovery above $117,440 would be essential to reestablish a bullish case.

Ether, the second-largest cryptocurrency by market capitalization, also showed signs of bearish divergence on the 14-day RSI following a record high over the weekend. The formation of a doji candle with an extended upper wick on Sunday highlighted market indecision, indicating that bears successfully pushed back against bullish attempts to drive prices higher. Ether’s price fell by approximately 3% to $4,624, with a critical support level identified at $4,065—where the price previously rebounded on August 20. Analysts noted that the lack of momentum in ETH’s upward movement could lead to a potential pullback, with the 50-day simple moving average (SMA) near $3,805 offering further support if the decline continues.

Meanwhile, on-chain activity revealed significant movements by one of Bitcoin’s original whale wallets. After years of inactivity, a Bitcoin OG wallet holding over 85,947 BTC ($547M) began trading on-chain, selling BTC while accumulating Ethereum. The wallet also opened a substantial long position on Ethereum, with the moves reflecting a broader trend of institutional and large-scale investors rotating assets from Bitcoin into Ethereum. These actions are being interpreted as either a hedge against Bitcoin’s volatility or a strategic bet on Ethereum’s stronger relative performance. The scale of the move underscores the growing influence of institutional players in shaping cryptocurrency market dynamics.

On the 8-hour chart, Bitcoin remained just above its 200-period moving average at $113,498, a critical level that has become a battleground for bulls and bears. Price action highlighted a clear lower high structure following the rejection at $123,217, and Bitcoin has struggled to regain momentum above the 50-period and 100-period moving averages. A breakdown below the $112,000 level could trigger further downward movement toward $110,000, aligning with a broader weakening in market sentiment.

Analysts are split on the near-term direction of Bitcoin. Some warn of a potential breakdown below current support levels, while others see the current consolidation as a necessary step before a continuation higher. The actions of large-scale investors, such as the Bitcoin OG whale, along with technical indicators, suggest that the market is at a critical juncture. If bulls manage to defend current levels and push Bitcoin above the 50MA, the path back toward the $118,000–$120,000 range could reopen. However, continued weakness could deepen the bearish narrative, particularly if key support levels are breached without a significant rebound.

Source:

[1] Bitcoin Chalks Out Lower Price High After Powell, Ether Prints Doji at Lifetime Peak (https://www.coindesk.com/markets/2025/08/25/bitcoin-chalks-out-lower-price-high-after-powell-ether-prints-doji-at-lifetime-peak)

[2] Dormant Bitcoin Whale Awakens: BTC OG Rotates Into Ethereum (https://www.mitrade.com/insights/news/live-news/article-3-1063007-20250823)

[3] Ether erases gains from Jackson Hole rally after hitting new high (https://www.cnbc.com/2025/08/24/crypto-market-today.html)