Bitcoin News Today: Whales Plot Calculated Exit as Bitcoin Nears Critical Support Zone

Bitcoin’s recent price correction has drawn attention to whale activity and potential early signs of a reversal. After surging to a peak above $124,000, Bitcoin has since retreated by over 8%, trading around $113,867 as of August 21, 2025. On-chain data has revealed a strategic pattern of whale selling on Binance, with deposits ranging from 100 to 1,000 BTC occurring over multiple days. This distribution activity has been noted by analysts like Arab Chain, who describe it as a coordinated effort to capture profits without triggering sharp price drops [1].

The inflow of whale funds into exchanges has coincided with Bitcoin dipping near $112,500, reinforcing short-term selling pressure. Despite this, the 30-day cumulative whale flow indicator has remained steady at approximately $4.8 billion, suggesting broader accumulation trends are still intact. Analysts warn that if the selling continues without a corresponding increase in buying activity, Bitcoin could test the $110,000 support level [1].

On the flip side, signs of buyer interest are emerging. Whales and institutions have been buying the dip, as evidenced by a 200 BTC purchase worth around $23 million. Technical indicators such as the 111-day and 200-day simple moving averages (SMA), along with the Short-Term Holder Realized Price, are converging around $109.6k–$106.8k, signaling potential areas of support for a rebound [2]. Additionally, Bitcoin’s price has hit a historically significant zone where liquidity sweeps have preceded new all-time highs in the past. Analysts suggest that a rebound below $112k–$113k could be a favorable entry point for long-term investors [2].

The potential reversal has also been tied to four key triggers. These include a positive shift in the Bid-Ask Ratio across order books, slippage spikes exceeding 150, a drop in the True Retail Accounts Long % below 60%, and a reclamation of the 50 EMA. So far, these signals have shown mixed momentum, with the 50 EMA remaining a key psychological level to watch. If Bitcoin fails to stabilize above this, it may face further downward pressure [2].

Amid the price fluctuations, broader market dynamics remain in flux. Institutional players are actively dollar-cost averaging (DCA) through OTC desks and on-chain settlements, while exchange premiums on platforms like Coinbase provide insights into market sentiment [1]. The interplay between short-term whale-driven selling and long-term institutional accumulation could determine whether Bitcoin stabilizes above current levels or continues its downward trend.

As the market evaluates these factors, regulatory developments in the U.S. could also play a role. U.S. lawmakers, including Senator Cynthia Lummis, have signaled progress on a comprehensive crypto market structure bill, with potential passage by 2026. This legislation aims to resolve the long-standing dispute between the SEC and CFTC and could provide much-needed clarity for digital asset businesses [4]. Such regulatory advancements may influence investor behavior, particularly in the context of Bitcoin’s current price volatility.

Source:

[1] Bitcoin Whales Strike Again: Strategic Selling on Binance ... (https://www.mitrade.com/insights/news/live-news/article-3-1056976-20250821)

[2] Bitcoin's price drops below $115K – Watch out for THESE 4 ... (https://ambcrypto.com/bitcoins-price-drops-below-115k-watch-out-for-these-4-reversal-signs/)

[3] Bitcoin Pi Cycle Top Indicator (https://newhedge.io/bitcoin/pi-cycle-top-indicator)

[4] Senator Lummis Says U.S. Crypto Market Structure Bill Will ... (https://bravenewcoin.com/insights/senator-lummis-says-u-s-crypto-market-structure-bill-will-be-law-by-2026)

[5] Tether Taps Former White House Crypto Director Bo Hines ... (https://bravenewcoin.com/insights/tether-taps-former-white-house-crypto-director-bo-hines-as-u-s-strategy-adviser)

[6] China Eyes Yuan Stablecoin, U.S. Taps ... (https://coinstelegram.com/coinstelegram-confidential/china-eyes-yuan-stablecoin-u-s-taps-stablecoins-for-t-bills-tether-hires-ex-white-house-adviser-hong-kong-tightens-oversight/)