Bitcoin price is showing clear trend weakness after a $2.7 billion whale sell-off that triggered massive liquidations; technical indicators (ADX, RSI, Squeeze) point to choppy, potentially downward action, while Ethereum’s indicators remain comparatively bullish, suggesting market divergence.
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Massive whale dump triggered cascading liquidations and pushed BTC below key supports.
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Bitcoin’s ADX at 16 and RSI ~42 signal low trend conviction and growing selling pressure.
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Ethereum shows stronger ADX (41) and bullish EMA spread; market cap fell to $3.83 trillion.
Bitcoin price drops after whale-induced sell-off triggered liquidations; Bitcoin trend weakness vs. Ethereum resilience — view key levels, indicators, and trader actions now.
What is happening to Bitcoin price after the whale sell-off?
Bitcoin price has weakened after a $2.7 billion single-entity sell order sparked automated liquidations, pushing BTC toward critical support near $110,000. Technical indicators show low trend strength and elevated volatility risk, increasing the chance of choppy or downward moves in the short term.
How did the $2.7 billion whale dump affect crypto liquidations and market capitalization?
The whale dump triggered over $846 million in forced liquidations, contributing to a broader market sell-off that reduced total crypto market capitalization to approximately $3.83 trillion (down ~2.4% in 24 hours). Automated algorithmic selling amplified the move when BTC briefly tested the $110,000 support level.
What do technical indicators say about Bitcoin’s trend strength?
Bitcoin’s ADX reading sits at 16, well below the 25 threshold that confirms a strong trend, indicating a low-conviction, choppy market. The RSI near 42.5 signals selling pressure, while the Squeeze Momentum Indicator is “on,” suggesting volatility compression and a potential directional breakout.
Why might Ethereum be holding up better than Bitcoin?
Ethereum’s ADX at ~41 shows a strong directional trend despite recent profit-taking. The 50–200 EMA spread remains bullish and price is trading above both averages, which supports longer-term bullish bias. RSI near 59 remains neutral-to-positive, meaning recent declines have not yet fully eroded momentum.
Key levels and short-term price map
- Bitcoin — Immediate support: $110,500; Strong support: $107,000–$107,600; Immediate resistance: $116,000; Strong resistance: $120,000.
- Ethereum — Immediate support: $4,400; Strong support: $4,194; Immediate resistance (all-time): $4,954.
Frequently Asked Questions
How likely is a further Bitcoin breakdown after the whale sale?
Short-term risk is elevated. With ADX under 20 and RSI below 50, markets are vulnerable to directional moves; a sustained break under $107,000 would increase systematic selling risk from funds using long-term EMA rules.
Should traders buy the dip in Bitcoin or wait?
Traders should exercise caution: low ADX and an active squeeze suggest possible sharp moves. Tactical traders may wait for clearer volatility release or confirmed support tests before adding risk.
How should traders respond to this market environment?
Practical actions: prioritize risk management, tighten stop-losses, reduce leverage, and monitor EMA and support/resistance zones closely. Consider waiting for Squeeze Momentum to signal a clean release before initiating new positions.
Key Takeaways
- Whale-induced volatility: A single $2.7B dump triggered widespread liquidations and pushed BTC toward key supports.
- Technical divergence: Bitcoin shows weak trend metrics (ADX 16, RSI ~42), while Ethereum remains technically stronger (ADX ~41, bullish EMA spread).
- Trader action: Emphasize risk management—reduce leverage, monitor support levels, and wait for confirmed volatility resolution before entering new trades.
Conclusion
Bitcoin price weakness following a $2.7 billion whale sell-off underscores how single large orders can quickly reshape market dynamics. While BTC’s indicators point to fragile trend conditions, Ethereum’s metrics remain comparatively bullish. Follow key support and resistance levels, prioritize risk management, and monitor indicator confirmations before committing capital. COINOTAG will continue to track price action and update levels and odds accordingly.
Sources (plain text): Federal Reserve speech at Jackson Hole; TradingView price feeds; Myriad prediction market; COINOTAG; Dastan.
Disclaimer: The views and opinions expressed are informational only and do not constitute financial or investment advice.
