Bitcoin’s price is currently hovering below $112,000 as traders evaluate the recent major whale sell-off against signs of long-term accumulation trends. During the past month, over 100,000 BTC, equating to approximately $12.7 billion, have exited prominent wallets, marking the most significant distribution seen this year.
Despite these short-term pressures, analysts remain optimistic about Bitcoin’s long-term prospects, with various metrics suggesting potential price stabilization.
What to Know:
- Bitcoin’s price maintained just under $112,000 while traders assessed recent significant sell-offs and long-term trends in accumulation.
- Approximately 100,000 BTC were reported leaving large holdings in the past month, constituting the largest distribution of the year.
- Following recent pressures, analysts indicate that the long-term outlook for Bitcoin remains positive, driven by key indicators hinting at price stabilization.
On-chain data from CryptoQuant indicated that over 100,000 BTC (around $12.7 billion) left major wallets in the last 30 days. An analyst named caueconomy referred to this sell-off as the largest coin distribution of the year, citing a drop of 114,920 BTC in whale reserves, which led to a brief price dip below $108,000 last week.
Market activity closely resembles the trends of July 2022 when whales last made such aggressive position reductions.
“The portfolios of major players are still shrinking, which may continue to exert pressure on Bitcoin in the upcoming weeks,” the analyst stated. Sales coincided with lower ETF inflows and decreased trading volumes, affecting market dynamics significantly.
In a more optimistic view, Bitcoin is down only 13% from its record high in mid-August, indicating less severe declines compared to historical patterns. Analyst Dave the Wave from CryptoQuant mentioned that the one-year moving average increased from $52,000 last year to around $94,000, potentially breaking $100,000 soon, suggesting a structural uptrend.
Ryan Lee of Bitget believes the market’s supply metrics align with this optimistic perspective: “Bitcoin’s illiquid supply has reached a new high of 14.3 million BTC, with over 70% in wallets with minimal transaction activity, reflecting ongoing confidence in its long-term value.”
Lee also anticipates that Bitcoin’s price will stabilize and gain momentum within the $105,000–$118,000 range, supported by ETF flows and positive MACD signals.
Ethereum’s value is around $4,307, with forecasts supporting a price range of $4,100–$4,600 if ETF demand persists. Additionally, potential gains could emerge from upcoming network upgrades and DeFi triggers.
Conversely, while market breadth shows some improvement, sentiment remains subdued. Alex Kuptsikevich from FxPro highlighted a 2.5% increase in the total cryptocurrency market cap to $3.85 trillion last week, which still falls short of the 50-day average. He expressed concern over the low sentiment index, which dipped into the fear category at 44 before recovering to 51.
September’s historically weak performance introduces additional caution, compounded by macroeconomic pressures. Jeff Mei noted that U.S. inflation figures expected midweek could direct future market movements: “Surprising high numbers may lead to declines in Bitcoin and Ethereum, while lower figures could spark a rally.”
