Bitcoin is entering a decisive phase after setting fresh all-time highs last week but failing to trigger a clean breakout. Following the rejection below $125K, the market has shifted into uncertainty, with volatility rising and traders split on what comes next. Analysts are divided: some warn of a breakdown below current range supports, while others argue that this consolidation is just another step before a continuation higher.
Adding fuel to the debate, new on-chain data from Lookonchain reveals activity from a long-dormant Bitcoin OG. This wallet, which first received 100,784 BTC ($642M) seven years ago, has ended its dormancy with a surprising strategy. Instead of continuing to hold BTC, the OG sold a significant portion while rotating into Ethereum. The whale purchased 62,914 ETH ($267M) spot and opened a massive 135,265 ETH ($577M) long position.
Further on-chain analysis identifies six wallets tied to the same OG, collectively holding an enormous 83,585 BTC ($9.42B). The scale of these holdings confirms that we’re watching one of the most influential individual players in the crypto market.
These recent moves do not necessarily signal a wholesale rotation from Bitcoin into Ethereum across the broader market, but they highlight the tactics of a large, strategic whale. The Bitcoin short positions opened could serve as a hedge against existing BTC exposure, protecting gains while reallocating into ETH. Alternatively, the OG might anticipate a stronger relative performance from Ethereum in the short to medium term.
The reality is that the exact motives remain unclear. Still, these actions align with the latest trend of asset rotation into Ethereum, fueled by institutional adoption, treasury strategies, and leveraged bets. Regardless of intent, the market impact of such large-scale moves cannot be ignored, as they add weight to Ethereum’s growing dominance narrative.
The 8-hour chart shows Bitcoin trading at $112,779, holding just above its 200-period moving average (red line), currently positioned at $113,498. This level has become a crucial battleground between bulls and bears, as BTC tries to stabilize after losing the $120K zone earlier this month.
Price action highlights a clear lower high structure following the rejection at $123,217, which now stands as strong resistance. Since then, Bitcoin has struggled to recover momentum, consistently trading below the 50-period (blue) and 100-period (green) moving averages, signaling a bearish short-term bias. The confluence of these MAs around $116K–$117K marks a zone that BTC must reclaim to shift momentum back in favor of bulls.
For now, support at $112K is being tested repeatedly. A breakdown below this level could trigger further downside toward $110K, aligning with the broader market’s weakening momentum. On the flip side, if bulls manage to defend current levels and push price above the 50MA, the path back toward $118K–$120K could reopen.
Featured image from Dall-E, chart from TradingView
