Bitcoin Whales Sell 40,000 BTC as Price Tests $108,000 Support

Bitcoin whales have significantly increased their selling activity this week, offloading over 40,000 BTC worth approximately $4.3 billion as the price approaches the critical $110,000 level. This surge in selling activity coincides with Bitcoin’s attempt to break through the $110,000 resistance level. Such large-scale liquidation by whales often signals caution among major holders, potentially reflecting concerns about the sustainability of the current rally. This selling pressure can dampen bullish momentum and increase volatility, making it challenging for Bitcoin to maintain its upward trajectory.

The Liveliness metric, which measures the frequency of Bitcoin transactions relative to coin age, has shown a sharp increase recently. This suggests that long-term holders (LTHs) are moving their assets more frequently than usual, often interpreted as a sign of selling rather than accumulation. Given that LTHs typically exert substantial influence on market dynamics, their increased activity aligns with the bearish signals from whale sell-offs. This trend may foreshadow heightened market volatility and potential downward pressure on Bitcoin’s price if selling persists.

Bitcoin’s recent 7% price increase has brought it to approximately $108,145, where it is currently testing the $108,000 support level. The ability to sustain this level is crucial for maintaining bullish momentum. However, ongoing whale selling and the shift in LTH behavior present significant headwinds. Should Bitcoin fail to hold $108,000, technical analysis points to subsequent support zones at $105,622 and $102,734, which could serve as potential pullback targets.

Conversely, if institutional demand intensifies and surpasses the selling pressure from whales and LTHs, Bitcoin may break through the immediate resistance at $109,476. A decisive move above this threshold would likely invalidate the current bearish outlook and could propel Bitcoin toward the $110,000 milestone, reinforcing the ongoing upward trend.

In summary, Bitcoin faces a pivotal moment as whale sell-offs and increased activity from long-term holders introduce bearish pressures near critical support levels. While the $108,000 mark is under scrutiny, the balance between selling pressure and institutional demand will determine Bitcoin’s short-term trajectory. Market participants should monitor these dynamics closely, as a failure to hold support could lead to notable pullbacks, whereas overcoming resistance may signal renewed bullish momentum.