Behind The Scene it may be.
Bitcoin fell 1.79% to $116,203 over 24h, aligning with a broader 2.71% crypto market decline. Key drivers include profit-taking, whale activity, and technical weakness.
Profit-Taking + Liquidations – $128M BTC longs liquidated after ETH rally cooled.
Whale Moves – Bhutan transferred $92M BTC to wallets linked to exchanges.
Technical Breakdown – Price fell below critical $118K support (23.6% Fib level).
1. Profit-Taking and Leverage Unwind (Bearish Impact)
Overview: Bitcoin faced $128M in long liquidations , its highest since August 12, as traders closed positions after ETH’s failed $5K rally triggered broader risk-off moves.
The liquidation cascade amplified selling pressure, while Bitcoin’s dominance rose to 58.9% as capital rotated from alts to cash. Fear & Greed Index dipped to 56 (Neutral) from 62 (Greed) last week, reflecting cooling optimism.
Watch: Fed Chair Powell’s Jackson Hole speech (Aug 18–20) for macro cues.
2. Whale Activity and Supply Overhang (Mixed Impact)
Overview: Bhutan moved 800 BTC ($92M) to new wallets, following a pattern of transfers to custodians like Binance (CryptoTimes). Meanwhile, Strategy added 430 BTC ($51M) at $119,666.
What this means: While institutional accumulation (Strategy) supports long-term demand, Bhutan’s transfers raised concerns about potential OTC sales. Exchange inflows spiked to 10,329 BTC on Aug 15 (CMC), signaling whale redistribution.
3. Technical Weakness (Bearish Impact)
Overview: BTC broke below the 7-day SMA ($118,992) and 23.6% Fibonacci retracement ($121,504). MACD histogram turned negative (-85), signaling bearish momentum.
What this means: The loss of $118K support triggered algorithmic selling, with RSI (47) showing room for further downside. Traders now eye the 50-day SMA ($115,712) as next support.
Conclusion
Bitcoin’s dip reflects profit-taking after ETH’s rally stalled, whale-induced supply anxiety, and technical breakdowns. While institutional buying (e.g., Strategy) persists, sentiment remains fragile ahead of macro events.
