Bitcoin News Today: Whales Shift Stakes as Bitcoin Braces for Crucial Consolidation Test

Bitcoin’s recent market movements have sparked renewed optimism among analysts, with on-chain data and whale activity pointing toward a potential recovery. The cryptocurrency dipped below $112,000 over the weekend amid a significant liquidation of long positions, a phenomenon described by many as a market reset. This event, the largest long liquidation since December 2024, has triggered a consolidation phase that could serve as a foundation for a stronger bullish resurgence [1]. On-chain metrics suggest that the pain is largely concentrated among new investors, while those holding Bitcoin for 1 to 6 months remain profitable [1]. Analysts argue that this shift in ownership from speculative traders to more resilient holders reduces excess supply and strengthens support levels, making a rebound more likely.

Key technical indicators are closely watched as Bitcoin attempts to stabilize around $108,000—a level aligned with the average cost basis for mid-term holders. Sustaining this level is seen as crucial for stabilizing market sentiment and preventing deeper corrections. If Bitcoin fails to maintain this support, further declines toward $103,000 and potentially as low as $95,000 are possible [1]. The STH SOPR (Spent Output Profit Ratio) remains negative, confirming ongoing capitulation in the market. However, the proximity of Bitcoin to these levels suggests that the bottom may be closer than previously anticipated, with potential bounces likely forming around $103,000 [1].

Whale activity has also played a pivotal role in shaping the recent narrative. A prominent Bitcoin whale sold 22,769 BTC valued at $2.59 billion, redirecting the funds into Ethereum. This includes 472,920 ETH in spot purchases and a $577 million long position on Hyperliquid, signaling a strategic shift toward the second-largest cryptocurrency [2]. The whale’s actions were followed by the closure of a $450 million long position at an average price of $4,735, locking in $33 million in profit [2]. Such movements are often interpreted as a sign of institutional-grade positioning and confidence in Ethereum’s potential amid Bitcoin’s short-term consolidation.

Ethereum has benefited from this influx of capital, with a separate whale staking $2.5 billion in ETH via a single contract, reinforcing the network’s long-term strength. This aggressive accumulation aligns with Ethereum’s growing dominance in decentralized finance and institutional adoption [3]. Analysts have pointed to the ETH/BTC ratio as a key metric, with its current level suggesting that investors are rotating capital toward altcoins in anticipation of a broader bull market. Ethereum’s ability to maintain critical support zones above $4,400 further underscores its resilience compared to Bitcoin’s recent volatility [4].

Looking ahead, the market is entering a critical phase of consolidation. Bitcoin bulls are defending the $110,530 support level, with a successful hold likely to allow the asset to re-enter a trading range between $110,530 and $124,474 [5]. On the other hand, a breakdown below this level could expose Bitcoin to a correction toward $100,000. Meanwhile, Ethereum’s technical setup remains bullish, with the potential to test $5,000 if buyers continue to defend key levels [5]. As whales continue to rotate into Ethereum and ETF inflows show a shift in institutional preferences, the market appears poised for a period of heightened volatility and strategic positioning.

Source:

[1] 3 Key Indicators Pointing to an Imminent Bitcoin Recovery (https://investx.fr/en/crypto-news/3-key-indicators-pointing-to-imminent-bitcoin-recovery/)

[2] $11B Bitcoin Whale closes $450M ETH long, scoops up ... (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether)

[3] Massive Ethereum Whale Stakes $2.5B ETH In Single Move (https://www.mitrade.com/insights/news/live-news/article-3-1070577-20250827)

[4] Asia Crypto News: BTC Fragility and ETH Rotation Signal ... (https://www.coindesk.com/markets/2025/08/26/asia-morning-briefing-btc-fragility-and-eth-rotation-signal-market-bracing-for-consolidation-without-new-liquidity)

[5] SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK (https://cointelegraph.com/news/price-predictions-8-25-spx-dxy-btc-eth-xrp-bnb-sol-doge-ada-link)