Key Takeaways
With the ongoing price dip, BTC has lost a key support level. But despite the bearish sentiment, Bitwise reported that institutional demand for Bitcoin is six times higher than the available supply.
It has been over two weeks since Bitcoin [BTC] began moving downward, losing 13% of its value. Currently, it continues to hold this bearish trend.
Based on its price action and recent whale activity, the asset appears likely to extend its downtrend in the coming days.
Rising trading volume
At press time, BTC hovered near the $108,500 level, having recorded a 1.65% decline in the past 24 hours.
Despite the ongoing price drop, participation from investors and traders continued to increase, resulting in a 15% surge in trading volume.
This increase in trading volume during a price decline signals strong downside momentum for the asset.
Whale offloads $438 million in BTC, time to sell?
On the 30th of August, blockchain-based transaction tracker Lookonchain found that a whale dumped 4,000 BTC worth $438 million in two transactions of 2,000 BTC each, carried out within a span of 12 hours.
This is not the only activity the whale has engaged in. The post on X also revealed that over the last 24 hours, this whale has been dumping BTC holdings in exchange for ETH.
According to recent data, the whale had purchased 49,850 ETH worth $219 million, and continued to accumulate ETH on the spot market. So far, this crypto whale has added 691,358 ETH, valued at $3 billion.
The potential reason behind this BTC dump and ETH accumulation is not yet known, but it appears the whale is following the current trend.
Institutions’ Bitcoin demand
Looking at this dump, you may think of selling BTC holdings due to the belief in further downside momentum.
But wait, recently, Bitwise, an asset management firm, shared a report revealing that Bitcoin’s demand is significantly rising as global interest continues to grow.
Since the beginning of 2025, institutions have purchased 690,710 BTC compared to only 109,072 BTC mined by miners. This indicates that institutional demand for Bitcoin is six times higher than the supply.
When combining the whale activity with the Bitwise report, it appears that Bitcoin might be in a short-term downtrend, but the long-term outlook remains bullish.
The data further reveals that in 2024, institutions purchased 913,006 BTC, while only 217,771 BTC were mined. During that year, BTC’s price surged over 150%, which explains the strong long-term trend.
Bitcoin: Key levels to watch
AMBCrypto’s technical analysis reveals that BTC has lost its key support at the $110,000 level on the daily chart. It also closed a daily candle below this level, suggesting potential preparation for further downside momentum.
However, there is another support at $107,490, which could still hold BTC’s price from falling further.
Source: TradingView
Based on recent price action and historical patterns, if the downside momentum continues and the price fails to hold this local support, another 7.5% dip could be possible.
If that happens, BTC’s price may drop to the $100,000 mark.
At press, the technical indicator Supertrend has turned red and is moving above the BTC price. This suggests that Bitcoin is in a downtrend with strong downside momentum.
Whereas, the asset’s Relative Strength Index (RSI) stands at 38, which hints at bearish market sentiment and that BTC is nearing the oversold territory.
BTC major liquidation levels
Given the current market sentiment, it appears that traders are following the broader trend.
According to on-chain analytics firm CoinGlass, BTC’s major liquidation levels are at $107,261 on the lower side and $109,592 on the upper side.
Source: CoinGlass
These are not just key levels, as traders at these points are over-leveraged, holding $664 million worth of long positions and $1.06 billion worth of short positions.
So, bears are currently dominating the asset, and a fall below the $107,261 level could trigger a sharp decline.
