Massive Bitcoin Sale by Whale Puts Cryptocurrency at Pivotal Moment

Bitcoin, the world's leading cryptocurrency, has experienced a 13% price drop over the past two weeks, continuing to hold a bearish trend. At press time, BTC is hovering near the $108,500 level, having recorded a 1.65% decline in the past 24 hours.

In 2024, institutional demand for Bitcoin surged, with institutions purchasing 913,006 BTC, six times more than the 217,771 BTC mined during that year. This trend has continued into 2025, with institutions purchasing 690,710 BTC compared to only 109,072 BTC mined since the beginning of the year.

Public companies collectively hold over 1 million Bitcoin, with Michael Saylor's Strategy owning about 636,000 BTC and MARA Holdings about 52,000 BTC. Institutional investments in Bitcoin ETFs and other crypto assets reached approximately $21.6 billion in Q1 2025, with major institutional investors including Harvard University, Goldman Sachs, Brevan Howard, Wells Fargo, and Jane Street actively acquiring Bitcoin-related assets.

However, a significant whale has been dumping BTC holdings, offloading 4,000 BTC worth $438 million in two transactions within 12 hours on August 30. This whale has also been accumulating Ethereum (ETH), purchasing 49,850 ETH worth $219 million.

The technical indicator Supertrend has turned red and is moving above the BTC price, suggesting that Bitcoin is in a downtrend with strong downside momentum. The Relative Strength Index (RSI) stands at 38, hinting at bearish market sentiment and that BTC is nearing the oversold territory.

Traders at these points are over-leveraged, holding $664 million worth of long positions and $1.06 billion worth of short positions. Bears are currently dominating the asset, and a fall below the $107,261 level could trigger a sharp decline. If the downside momentum continues and the price fails to hold this local support, another 7.5% dip could be possible, dropping BTC's price to the $100,000 mark.

Despite the bearish trend, participation from investors and traders has increased, resulting in a 15% surge in trading volume. There is another support at $107,490 that could potentially hold BTC's price from falling further.

The reason behind the whale's BTC dump and ETH accumulation remains unknown. However, the asset appears likely to extend its downtrend in the coming days due to its price action and recent whale activity.