Bitcoin Price Prediction: Whale Sell-Offs and ETF Outflows Pressure BTC at $111K
The last week of August has been wild in the crypto market, with Bitcoin plummeting despite earlier signs of strength...
Quick overview
- Bitcoin has seen a significant drop, trading at $111,800 after reaching an all-time high of $124,400 earlier this month.
- A massive sell-off by Bitcoin 'whales' contributed to a $45 billion decrease in the total crypto market cap.
- Despite the downturn, some investors remain optimistic, with predictions of potential gains, although institutional sentiment is cautious.
- Technical indicators suggest Bitcoin is in a controlled downtrend, with key resistance levels at $114,000 and support at $110,300.
The last week of August has been wild in the crypto market, with Bitcoin plummeting despite earlier signs of strength. After hitting an all time high of $124,400 earlier this month, the world’s largest digital asset is now trading at $111,800 – down over 10%. The correction has investors on high alert as total crypto market cap dropped 2% to $2.22 trillion.
Major altcoins like Ethereum (ETH) and Solana (SOL) followed Bitcoin lower, showing broad based weakness. Fed Chair Jerome Powell’s comments at Jackson Hole initially lifted sentiment but macro headwinds and investor caution quickly erased gains. Again, the fragility of crypto rallies is on display.
Whale Sell-Off Wipes Out $45B
The latest drop was triggered by a massive Bitcoin sell off from early adopters, or “whales”. A Satoshi era wallet moved 24,000 BTC worth $2.7B and Bitcoin dropped $4,000 in minutes and $45B from total market cap.
More whale activity is adding pressure. One entity moved $2.7B worth of BTC to Hyperliquid over the past week and bought $2.2B in spot trades. Analysts say this is distribution from long term holders, many of whom bought Bitcoin for under $10 and are creating a massive supply overhang.
Key Points:
- 24,000 BTC ($2.7B) sold in one transaction.
- $45B erased from crypto’s market cap.
- Whales are capping rallies.
Investor Outlook Amid ETF Outflows
Despite the headwinds, Bitcoin is still the anchor of the crypto market. Michael Saylor of MicroStrategy is still bullish, predicting 30% year over year gains. But institutional sentiment is less so.
Spot Bitcoin ETFs saw $1.17B in outflows last week – the second largest since their inception. Add to that whale selling and it’s clear investors are hesitant with uncertain regulation and thin liquidity.
For both retail and institutional traders, September will be the month. Sustained whale pressure could lead to deeper drawdowns, strong absorption could stabilize BTC. Right now, Bitcoin is the market’s volatility – risk and opportunity.
Bitcoin (BTC) Price Prediction – Technical Outlook
Bitcoin is trading at $111,100 and is stuck in a descending channel with lower highs and lower lows. The structure is a controlled downtrend with repeated rejections at $114,000.
The 50-EMA ($114,749) and 100-EMA ($115,636) are acting as resistance and capping the rallies. Candlestick patterns show long upper wicks, showing seller dominance.
Momentum indicators are weak. RSI is at 32, oversold but not yet a reversal. MACD histogram is deep in the red, showing sustained selling pressure.
Key Levels:
- Support: $110,300, $107,700, $105,000
- Resistance: $113,500, $115,000
Trade Setup:
- Bullish case: Break above $113,500 to $115,000–$117,000. Stop below $110,000.
- Bearish case: Break below $110,300 to $107,700. Risk above $112,000.
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