Bitcoin Price Wobbles: Whale Sell-Off & Institutional Demand Clash
Bitcoin at a Crossroads: Whale Activity Sparks Uncertainty
Bitcoin (BTC) is navigating turbulent waters, down 13% in the last two weeks. Recent market activity points to a potential continuation of this downtrend.
Despite the bearish sentiment, a new report from Bitwise reveals a surprising dynamic: institutional demand for Bitcoin is six times greater than the available supply.
Trading Volume Rises Amid Price Drop
Currently, Bitcoin is hovering around $108,500, marking a 1.65% decrease in the last 24 hours. Interestingly, trading volume has increased by 15% during this price decline, suggesting strong downside pressure.
Whale Dumps $438 Million in Bitcoin
On August 30th, Lookonchain reported that a whale offloaded 4,000 BTC, valued at $438 million, in two separate transactions within a 12-hour period. This same whale has also been exchanging BTC for ETH, acquiring 49,850 ETH worth $219 million, and currently holds 691,358 ETH valued at $3 billion.
The reasons behind this shift from Bitcoin to Ethereum remain unclear, but it could signal a change in investment strategy.
Institutional Bitcoin Appetite Remains Strong
While the whale's actions might cause concern, Bitwise's recent report offers a contrasting perspective. The report highlights a significant rise in Bitcoin demand driven by growing global interest from institutions.
Since the start of 2025, institutions have acquired 690,710 BTC, while miners have only produced 109,072 BTC. This data underscores the substantial demand exceeding supply.
Key Bitcoin Price Levels to Watch
Technical analysis indicates that Bitcoin has lost a key support level at $110,000. However, a subsequent support level exists at $107,490. A failure to hold this level could trigger a further decline of approximately 7.5%, potentially pushing the price down to $100,000.
Currently, the Supertrend indicator signals a downtrend, and the Relative Strength Index (RSI) at 38 suggests bearish sentiment with BTC approaching oversold conditions.
Liquidation Levels Indicate Market Sentiment
Data from CoinGlass shows major liquidation levels at $107,261 (downside) and $109,592 (upside). These levels represent significant concentrations of leveraged positions, with $664 million in long positions and $1.06 billion in short positions. A break below $107,261 could lead to a rapid price decline.