Bitcoin Price Faces $105K Drop Risk as Whale Selling Pressure Mounts

Market Struggles as Sellers Overpower Buyers

Bitcoin continues to face significant selling pressure as the cryptocurrency trades below key support levels around $108,000. The digital asset shows no clear signs of recovery as multiple bearish factors converge to create downward momentum in the market.

Labor Day Market Closure Adds Uncertainty

The Labor Day holiday closure of Wall Street markets on Monday presents additional challenges for Bitcoin price stability. With spot Bitcoin ETFs also closed during this period, reduced institutional participation could amplify volatility and selling pressure.

OG Bitcoin Whales Threaten Market Stability

Long-dormant Bitcoin whale wallets have become active, creating significant market concern. Recent transfers from these whale-sized wallets, including conversions to Ethereum, have increased selling pressure. The threat of another billion-dollar Bitcoin tranche being dumped on the open market continues to weigh heavily on investor sentiment.

Technical Analysis Points to Downside Targets

Futures Market Driving Price Action

Bitcoin's intraday price movements remain primarily influenced by perpetual futures market activity. Data from major exchanges shows the cumulative volume delta revealing heavy selling from large traders in the 10,000 to 10 million cohort, significantly outpacing buying activity in both spot and futures markets.

Key Support and Resistance Levels

Technical analysis reveals several critical price levels for Bitcoin:

• Immediate support at $105,000 where significant bids are positioned

• Secondary support levels at $102,600 and $100,000

• Deeper support zone between $99,000 and $92,000 based on 10% orderbook depth

Liquidation Clusters Indicate Vulnerability

Bitcoin's 30-day liquidation heatmap shows continued downside liquidity absorption, with the most significant cluster concentrated at $104,000. This concentration suggests potential for accelerated selling if this level breaks.

Retail Buyers Show Resilience Despite Pressure

While institutional and whale selling dominates, retail buyers in the 100 to 10,000 size cohort continue purchasing during price dips. The bid-to-ask ratio indicates buying interest emerging in the $112,000 to $111,000 zone and again near $107,200 levels.

Macro Factors Weighing on Sentiment

Several macroeconomic factors contribute to the negative market environment:

Traditional Market Weakness

• End-of-week weakness in major indices including DOW, S&P 500, and Nasdaq

• Declining inflows to spot Bitcoin ETFs

• Market uncertainty around Federal Reserve policy decisions

Political and Policy Concerns

• President Trump's fluctuating tariff rhetoric creating market volatility

• Attempts to influence Federal Reserve board decisions adding uncertainty

• Mixed signals on cryptocurrency regulatory environment

Future Rate Cut Expectations Provide Limited Support

Market participants anticipate Federal Reserve interest rate cuts beginning in late September or October. However, these longer-term positive expectations have proven insufficient to offset immediate bearish pressures affecting Bitcoin price action.

Short-Term Outlook Remains Bearish

Current market dynamics favor continued downside pressure for Bitcoin. The combination of whale selling threats, reduced institutional participation during market holidays, and persistent futures market selling creates a challenging environment for price recovery.

Technical indicators suggest the path of least resistance remains to the downside, with $105,000 representing the next significant support level. Should this level fail to hold, deeper support zones around $100,000 and below could come into play.

Risk Factors Continue to Accumulate

The convergence of multiple bearish factors creates elevated risk for Bitcoin holders:

• Continued whale selling pressure from early Bitcoin adopters

• Reduced market participation during holiday periods

• Persistent futures market selling from large traders

• Broader macroeconomic uncertainty affecting risk assets

Market Structure Favors Sellers

Order book analysis reveals that while retail buyers remain active during dips, the overall market structure continues to favor sellers. The imbalance between selling pressure from large participants and buying interest from smaller traders suggests continued price weakness in the near term.

Bitcoin's struggle to maintain key support levels, combined with the threat of significant whale selling and reduced institutional participation, points to increased downside risk. The $105,000 level represents a critical test for Bitcoin's price stability in the coming sessions.

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