What to Know:
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Whales sold $4B in Bitcoin, creating heavy market pressure.
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BTC hovers near $111K support, with risk of falling toward $100K.
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ETF inflows slow, raising doubts about the bull run’s strength.
Bitcoin’s long-running rise is starting to show signs of weakness. BTC is now getting closer to the $100,000 support level after reaching all time highs earlier this year. Traders are starting to wonder if this bull run will be over soon because of a mix of whale profit-taking, technical warning signs, and uneven institutional flows.
$4B Whale Sell-Off Creates Pressure
Yesterday, whales sold around $4 billion worth of BTC, according to on-chain analytics. Out of this, “super whales” holding more than 10,000 BTC accounted for $2.17 billion.
When whales sell this heavily, it usually creates a wave of selling pressure across the market. This is happening because short-term traders are getting their hands on Bitcoin instead of long-term holders. These new holders are more likely to sell quickly, which makes the market less stable.
We’ve seen this happen before. Whales sold about $9 billion worth of BTC in July 2024, and the market fell by 12% not long after. A lot of analysts think that the current sell-off could lead to another time of consolidation, when prices stop going up and stay the same for a while.
Technical Signs Turn Bearish
Bitcoin’s recent price action is also showing warning signs. The price fell below the 30-day simple moving average at $115,286 and also dropped under the 38.2% Fibonacci retracement level of $114,014, suggesting momentum is weakening.
Other indicators are also concerning. The RSI is at 37.7, leaning toward bearish territory. At the time of writing BTC is trading at $108,528. If BTC stays above it the key support level of $111,000 the market may stabilize. But if it breaks below, prices could quickly slide toward $107,500 or even closer to $100,000.
ETF Flows: Mixed Picture
Institutional demand has been one of the strongest drivers of this bull run. U.S. spot Bitcoin ETFs have pulled in billions of dollars since launching earlier this year, with BlackRock leading the pack.
This week, ETFs saw $440 million in inflows, led by BlackRock’s $247.9 million. That’s positive, but there are signs of cooling demand. Grayscale’s Bitcoin Trust (GBTC) recorded $15.3 million in outflows, its first in nearly two weeks. In July, ETF inflows averaged over $1.2 billion per week. Compared to that, the latest flows look weaker. Some analysts say this shows investors are becoming more cautious as prices pull back.
El Salvador Strengthens Its Bitcoin Custody
While traders watch price charts nervously, El Salvador is making moves to secure its holdings. Today, the nation’s Bitcoin Office announced that it has split its 6,274 BTC (worth about $678 million) into 14 new wallets.
Previously, the country kept its Bitcoin in a single address for transparency. But officials warned this approach left them exposed to potential quantum computing threats, which could, in theory, break traditional cryptography and compromise funds. Each wallet will hold roughly 500 BTC, and the country will continue offering transparency through a public dashboard. While experts argue that practical quantum attacks are still decades away, El Salvador’s move highlights how seriously governments are treating long-term Bitcoin security.
The Bigger Picture
While whales are taking profits and technical signals look shaky, Bitcoin’s long-term story hasn’t changed much. Institutional adoption is still strong, and ETFs are still seeing inflows, though not as steadily as before.
Global economic conditions are also making things uncertain. Weak growth signals from both the U.S. and China are pushing investors to reassess risk. The upcoming U.S. inflation report on September 12 and the Federal Reserve’s next interest rate decision could also move Bitcoin sharply.
Final Thoughts
There are three main reasons why Bitcoin’s price is going down: whales are taking profits, technical challenges, and mixed ETF flows. These pressures might make the price go down in the short term, but institutional interest and ETF demand are still keeping it from going down even more.
Everyone is watching the $111,000 support level right now. If Bitcoin stays above that line, bulls might start to feel more confident. But if it doesn’t work, it could drop to around $100,000.
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