Bitcoin News Today: Liquidity Drains and Whales Create Perfect Storm for Bitcoin’s Next Move

Bitcoin faces increased selling pressure as short-term holders begin to capitulate and liquidity in the market thins, according to recent on-chain data and analyst commentary. The Short-Term Holder Spent Output Profit Ratio (STH SOPR-7d) has remained in a neutral to slightly positive range, hovering around 1.00–1.04, suggesting that short-term investors are selling at or slightly above cost basis. This dynamic is seen as a sign of market stability in the short term, but analysts caution that a continued decline in SOPR below the 1.00 threshold could signal weakening buyer demand and a higher risk of deeper corrections.

The recent pullback in Bitcoin’s price to around $115,000, following a sharp rejection from its all-time high of $124,000, has raised concerns about the sustainability of its bullish momentum. On-chain indicators, including liquidity sweeps in key zones, have intensified the rate of long liquidations, particularly over the weekend when institutional demand appeared to wane. Hyblock's analysis highlights that liquidity on the downside was effectively swept, exposing vulnerabilities in a thin market environment. However, despite the sell-off, signs of dip-buying activity and strong institutional demand suggest that the current dip may not persist.

Bitcoin’s recent price action reflects a tug-of-war between bulls and bears, with the 50-day moving average (DMA) now serving as a critical support level. The 50-DMA is currently at $115,712, and a sustained breakdown could lead to a retest of the 100-DMA near $110,833. Meanwhile, the 200-DMA remains a key long-term floor at $100,339. If Bitcoin manages to reclaim its prior resistance at $123,217 and close above $124,000, it could signal renewed bullish momentum and potentially push the price toward $130,000–$135,000 levels. Conversely, a failure to stabilize above $115,712 may increase the likelihood of a more extended correction.

Liquidity concerns have also emerged as a key factor influencing Bitcoin's near-term trajectory. A potential $400 billion liquidity drain from the U.S. Treasury General Account (TGA) is expected in the coming months, which could exacerbate selling pressure in the crypto and broader equity markets. Analysts, including David Duong from Coinbase and Marcus Wu from Delphi Digital, highlight that the current financial system has weaker liquidity buffers compared to 2023, making it more vulnerable to large-scale Treasury issuance. This structural fragility could lead to higher funding rates and negatively impact risk assets like Bitcoin.

Bitcoin’s price volatility is further compounded by speculative market behavior and potential price manipulation dynamics. Traders and analysts have observed unusual liquidity patterns on exchange order books, with some suggesting that large actors may be exploiting bid-ask spreads to influence price direction. Entities colloquially referred to as “Spoofy the Whale” and “Notorious B.I.D.” are believed to be manipulating liquidity levels to push Bitcoin lower. Additionally, Bitcoin ETF flows are closely monitored, as institutional buying has continued despite on-chain weakening signs. However, recent data shows a net outflow from major U.S. spot ETFs, raising questions about the sustainability of bullish sentiment.

As Bitcoin consolidates at key levels, market participants remain divided on its immediate future. While some analysts see this correction as a healthy pause before the next upward leg, others warn that the combination of thin liquidity, bearish SOPR trends, and macroeconomic headwinds may lead to further downside risk. The outcome will likely depend on whether buyers can absorb the selling pressure and whether Bitcoin can reestablish control above critical support levels. For now, the market remains in a wait-and-see mode, with eyes on the Federal Reserve’s policy decisions and the broader macroeconomic landscape.

Source:

[1] Bitcoin STH SOPR-7d Signals Healthy Demand (https://www.mitrade.com/insights/news/live-news/article-3-1043915-20250815)

[2] Bitcoin SOPR Shows Potential Entry Zones: Short-Term ... (https://www.mitrade.com/insights/news/live-news/article-3-1048637-20250818)

[3] Bitcoin, Stocks Hit by $400B Liquidity Drain From U.S. ... (https://www.coindesk.com/markets/2025/08/20/bitcoin-stocks-hit-by-usd400b-liquidity-drain-from-u-s-treasury-account-not-jackson-hole-analysts)

[4] Bitcoin 'liquidity zones swept' but uptick in open interest ... (https://cointelegraph.com/news/bitcoin-liquidity-zones-swept-but-uptick-in-open-interest-hints-at-btc-recovery)

[5] Bitcoin sell pressure 'palpable' as BTC bid support stacks ... (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k)

[6] Asia Morning Briefing: Market Observers Say Bitcoin's ... (https://www.coindesk.com/markets/2025/08/20/asia-morning-briefing-market-observers-say-bitcoin-s-structure-looks-weak-even-as-industry-strengthens)

[7] American Bitcoin Plans Asia Deal to Grow BTC Reserves (https://cointelegraph.com/news/trump-linked-american-bitcoin-asia-acquisitions-btc)

[8] Bitcoin analysts point to 'manipulation' as BTC price falls ... (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low)