Bitcoin News Today: A Whale's $2.7B Dump Shatters Bitcoin's Price Floor

Bitcoin’s price has faced renewed downward pressure as it fell below $110,000 following a large-scale offloading of 24,000 BTC by a single whale over the weekend. The transaction, valued at over $2.7 billion, sent shockwaves through the market, accelerating a sell-off that had already seen Bitcoin plunge from a peak of $117,000 to around $109,894. The move triggered widespread liquidations, with over $700 million in leveraged positions wiped out as the price dropped to as low as $108,890. Analysts and traders are closely watching whether this threshold will hold or if further deterioration will push Bitcoin toward critical support levels below $100,000.

Technical indicators are also flashing caution. The 100 EMA on the daily chart was recently breached, a development that historically signals a potential deeper correction. Cryptographic trader Cryptorphic highlighted this as a key concern, warning that breaking below the 100 EMA could lead to a pullback toward $103,000. The 200-day SMA, a critical long-term support line, sits at just under $101,000. Should Bitcoin fall beneath this level, it could trigger a broader reassessment of the bull market narrative.

Market sentiment, while not yet in fear territory, is shifting. The Bitcoin Fear and Greed Index, a widely followed sentiment tracker, currently stands at 48 out of 100—just above “fear.” This reading reflects growing unease among traders but not yet a full-blown bearish reaction. Long-term holders, however, may find solace in historical data showing that Bitcoin has been profitable for 99.1% of its existence. That said, short-term holders, particularly those who bought within the past six months, face the risk of seeing their unrealized profits erode if Bitcoin fails to stabilize.

Axel Adler Jr., a crypto analytics expert, pointed to the $100,000–107,000 range as a crucial support zone. This area overlaps with the short-term holders’ cost basis and the 200-day SMA, making it a potential battleground for the next few weeks. If the price breaks below this level, the next line of defense lies between $92,000 and $93,000—territory where investors who held Bitcoin for three to six months are likely to feel the sting.

Glassnode, a leading blockchain analytics firm, emphasized the importance of Bitcoin reclaiming the $110,800 level. This price point represents the average cost of recent investors who bought in during May through July when Bitcoin was hitting all-time highs. Failure to reassert control above this level could signal the start of a more sustained correction.

Despite the recent sell-off, the Bitcoin network remains robust. The hash rate is approaching a new record high, currently at 909,080,589 Th/s—just shy of the previous peak of 1,084,828,947 Th/s. This suggests that miners and validators continue to support the network, even in the face of declining prices. However, market participants are also closely watching ETF inflows, as they have historically played a role in stabilizing Bitcoin during periods of volatility. Current data shows that Ethereum ETFs have outperformed Bitcoin ETFs in terms of inflows, signaling some level of capital rotation within the crypto space.

Analysts remain divided on the immediate outlook. While some believe the price could rebound due to short-covering at $114,000, others caution that the path of least resistance appears downward. BitBull, a prominent trader on X, suggested that downside liquidity has been largely exhausted, potentially setting the stage for a short squeeze in the coming days. However, this scenario remains speculative and contingent on broader macroeconomic factors.

In summary, Bitcoin faces a critical juncture as it tests key support levels following a whale-driven selloff. The coming weeks will likely determine whether the price can stabilize or if it will continue its descent toward the $100,000 level. Investors and traders are advised to remain cautious as market dynamics remain volatile and unpredictable.

Source:

[1] Bitcoin Price Crashes Below $110000 After Whale Sold (https://bitcoinmagazine.com/markets/bitcoin-price-crashes-below-110000-after-whale-sold-24000-btc)

[2] Bitcoin drops under $109K: How low can BTC price go? (https://cointelegraph.com/news/bitcoin-drops-under-109k-how-low-can-btc-price-go-next)

[3] Bitcoin Price, BTC Price, Live Charts, and Marketcap (https://www.coinbase.com/en-gb/price/bitcoin)