A major warning sign is flashing across the cryptocurrency market after a massive sell-off by large Bitcoin holders was revealed. According to Julio Moreno, Head of Research at CryptoQuant, whales have net sold 147,000 BTC since August 21, representing the fastest monthly rate of decline in the current cycle and creating significant bearish pressure.
This technical cryptocurrency price analysis shows that Bitcoin has initiated a relief rally that now faces strong resistance at its moving averages. If the price is sharply rejected from this level, the probability of a drop toward the $107,000 support increases considerably. A break below that mark would complete a bearish double-top pattern, which could trigger a larger decline toward a technical target near $89,526.
The information provided by CryptoQuant offers crucial context for the current price action. While short-term traders are attempting to drive a rebound, the sustained selling from whales suggests a lack of confidence at current levels or a large-scale profit-taking strategy. This conflict between on-chain metrics and price recovery attempts creates a highly uncertain environment for all market participants.
The Double-Edged Sword of Moving Averages
The implications of this scenario extend to the entire altcoin ecosystem. Ethereum (ETH), for instance, is also struggling to hold above its $4,060 support as it approaches its 20-day exponential moving average resistance ($4,393). A failure to overcome this resistance could lead ETH’s price to collapse toward $3,745. Therefore, a detailed cryptocurrency price analysis becomes essential for navigating the potential volatility that could be unleashed.
The market is at a critical crossroads. Bitcoin’s ability to break through the barrier of its moving averages will be the litmus test against the massive selling pressure from whales. Conversely, a rejection would confirm the bearish outlook, validating the on-chain data and opening the door to deeper corrections. The market’s future is uncertain and directly depends on the resolution of this technical battle in the coming days.
