Bitcoin Whale Resumes Selling as BTC Faces $116K Resistance

A prominent Bitcoin whale has returned to selling after a brief hiatus, depositing over $136 million worth of cryptocurrency to exchanges as Bitcoin struggles to break above the $116,000 price level.

Major Bitcoin Whale Returns to Market

Two Bitcoin wallets connected to a long-term holder who had maintained positions for over eight years deposited 1,176 BTC worth approximately $136 million to the Hyperliquid trading platform on Sunday. This marks the whale's return to active selling after a two-week break.

The same whale previously made headlines in late August when they exchanged over $4 billion worth of Bitcoin for Ethereum, representing nearly 36,000 BTC in total transactions.

Bitcoin Price Action and Market Impact

Bitcoin currently trades around $115,500, showing minimal movement over the past 24 hours. The cryptocurrency has struggled to maintain momentum above $116,000, a resistance level it briefly touched on Friday for the first time in three weeks.

The current price represents a 7% decline from Bitcoin's recent peak of over $124,000 reached on August 14. Trading has remained relatively flat with a high of $116,182 and a low below $115,000 in recent sessions.

Whale Trading Strategy and Performance

The whale's previous trading decision to swap Bitcoin for Ethereum has not performed favorably. Based on current market prices, the whale would face a loss of approximately 460 BTC, valued at around $53 million, if they were to reverse their ETH position back to Bitcoin.

The ETH to BTC ratio currently stands at 0.0401, showing a 6% gain over the past month. However, this ratio has remained below 0.05 since July of the previous year and is significantly lower than its all-time high of 0.14 reached in mid-2017.

Additional Whale Activity in Bitcoin Markets

The recent selling activity extends beyond this single whale. Other significant Bitcoin holders have also begun moving long-dormant funds:

A wallet containing nearly 445 Bitcoin, inactive for almost 13 years, transferred portions of its holdings to the Kraken exchange on Thursday. This represents one of the longest periods of inactivity for such a substantial Bitcoin position.

Earlier in September, another wallet holding nearly 480 Bitcoin made its first transaction since 2012, though this appeared to be primarily a transfer to a new address rather than a sale.

Market Implications of Whale Movements

Whale movements often serve as indicators of "smart money" positioning and can influence broader market sentiment. The resumption of selling by long-term holders may create additional selling pressure in the near term, particularly as Bitcoin attempts to establish support above key psychological levels.

The timing of these movements coincides with Bitcoin's struggle to break through the $116,000 resistance level, suggesting potential correlation between whale activity and current price action.

Technical Analysis and Price Outlook

Bitcoin's current trading pattern shows consolidation around the $115,000-$116,000 range. The inability to sustain gains above $116,000 indicates potential resistance at this level, which may require increased buying volume to overcome.

The cryptocurrency's performance over the past three weeks has been relatively subdued compared to the strong rally that pushed prices to $124,000 in mid-August. Market participants are closely monitoring whale activity and institutional flows for signs of future direction.

Conclusion

The return of whale selling activity adds another variable to Bitcoin's current price dynamics. While the cryptocurrency maintains relatively stable trading above $115,000, the combination of resistance at $116,000 and renewed selling pressure from long-term holders presents challenges for near-term price appreciation.

Market observers continue to track large wallet movements and exchange inflows as key indicators of potential price direction in the coming weeks.

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