Bitcoin’s price remains under pressure after retreating from its record high above $124,000 earlier this month. At the time of writing, BTC is trading at $113,146, reflecting a decline of 8.7% from its recent peak, though it has recorded a modest 1.8% daily increase.
Analysts have pointed to a shift in behavior among large traders, particularly on Binance, the world’s largest exchange by volume. According to Arab Chain, a contributor to CryptoQuant’s QuickTake platform, the activity of whales, investors with large holdings, has played a significant role in recent corrections.
His analysis of August trading activity suggests that weakened momentum and renewed selling pressure may explain the inability of Bitcoin to sustain its highs.
This activity coincided with Bitcoin’s drop below $112,000, with the Delta indicator remaining near zero, an absence of clear buying pressure. Arab Chain explained that the lack of demand amid increased coin circulation typically results in corrections.
“Large investors are selling again without a strong wave of new buyers emerging to balance the effect. This isn’t the end of the bullish cycle, but the momentum is starting to lose steam,” he said. He added that future price movements may depend on whether new catalysts, such as macroeconomic developments or institutional inflows, can reignite demand.
This suggests some investors, possibly institutions, were buying during the dip. However, he flagged caution given that the funding rate remained positive, a sign that traders were still leaning bullish even as prices declined, raising concerns about the risk of a liquidity reset.
With whales selling, stablecoin inflows rising, and derivatives markets heating up, Bitcoin’s next move will likely depend on whether demand can reassert itself strongly enough to offset recent profit-taking.
Featured image created with DALL-E, Chart from TradingView
