Bitcoin May Face Further Downside as Whales Rotate to ETH and Liquidity Clusters Build Near $105K

• Bitcoin drops under key technical levels, signaling short- and mid-term bearish trends.

• A whale swapped ~2,000 BTC for ~49,000 ETH, continuing a longer-term shift from BTC to ETH holdings.

• Liquidity heatmap shows heavy leveraged activity at $105K–$108K, a likely battleground for price action.

Bitcoin price falls below $108K, whales rotate to ETH, liquidity clusters form at $105K–$108K — follow updates and technical levels on COINOTAG.

Bitcoin trades below $108K as whales rotate to ETH and market cap slips. Liquidity clusters build around $105K, signaling heavy action.

• Bitcoin failed to hold above $112K, confirming a breakdown with price now trapped below both the 9-day EMA and 50-day SMA.
• A large whale investor sold over 2,000 BTC for 48,942 ETH, continuing a rotation trend that has flipped holdings since 2017.
• Liquidity heatmap shows high leveraged activity between $105K and $108K, forming a critical battleground for upcoming price movement.

Bitcoin tumbles below $108K as whales dump thousands of BTC for Ethereum, sparking concern across the market. Liquidity clusters grow near $105K, raising urgent questions about where BTC heads next.

What caused Bitcoin to drop below $108K?

Bitcoin fell below $108K after repeated failures to hold the $112,000–$115,000 zone and sustained selling from large holders. The price sits under the 9-day EMA and 50-day SMA, indicating both short- and mid-term bearish pressure that favored sell-side liquidity executions.

How are technical indicators shaping the current BTC move?

Price is trading near $108,980 at press time, down 0.35% in 24 hours and about 2.87% over seven days. The 9-day EMA is at $110,195.30 and the 50-day SMA at $115,892.04, both above spot, which signals momentum remains to the downside. RSI near 38 shows weak buying, while a MACD cross suggests slowing downside—yet no clear reversal.

Why are liquidity clusters at $105K–$108K important?

Liquidity zones concentrate stop orders and leveraged positions. Visible heatmap data shows significant order flow and liquidation risk between $105K and $108K. If sellers force the market through these clusters, cascade liquidations could accelerate declines; if buyers clear liquidity above, a short-covering bounce becomes more likely.

How significant is the whale rotation to Ethereum?

A long-term whale swapped roughly 2,000 BTC for nearly 49,000 ETH, part of a larger trend that has seen over 41,000 BTC converted into Ethereum holdings. The investor now holds 886,371 ETH. This rotation reduces immediate BTC bid-side supply and increases ETH demand, contributing to divergent performance between the two assets.

Frequently Asked Questions

What short-term levels should traders watch for Bitcoin?

Watch $105,000 as the critical downside level for potential liquidations and $112,000–$115,000 as resistance. A sustained move below $105K would increase downside momentum; reclaiming $112K would be the first sign of buyer re-entry.

How does whale selling affect market structure?

Large sell orders from whales increase available supply and can flip support into resistance. When whales convert BTC to ETH, it reduces BTC demand while boosting ETH accumulation by major holders, shifting market structure and sentiment.

Key Takeaways

• Immediate risk: Price under the 9-day EMA and 50-day SMA signals continued bearish bias.
• Liquidity concentration: $105K–$108K is the key battleground for potential liquidations or reversals.
• Whale movement: Large BTC-to-ETH swaps reduce BTC supply and may pressure BTC price further.

Conclusion

Bitcoin’s decline below $108K reflects technical breakdowns and strategic asset rotation by large holders, with liquidity clusters at $105K–$108K particularly critical. Traders should monitor on-chain flows, heatmaps, and the $105K level closely. COINOTAG will continue to track developments and update technical levels and market flows.