After experiencing an impressive rebound following the Jackson Hole economic symposium, Bitcoin experienced a dramatic reversal over the weekend, dropping below $110,600. This drop comes despite bullish sentiment fueled by institutional interest and DeFi’s growing momentum. However, onchain data suggests Bitcoin is facing pressure from a broader distribution among its holders. Key indicators like the 10-100 BTC cohort pushing sales above $105,000 highlight this trend.
Analysis of Bitcoin wallet cohorts reveals a shift in behavior. Smaller wallets continue to accumulate, while larger ones like those holding 10-100 BTC are turning into sellers after reaching resistance near $118,000. Meanwhile, the 100-1000 BTC group is split between accumulation and distribution around the crucial $105,000 level.
However, this key support zone isn’t without its challenges. Bitcoin seasonality and post-spot ETF launch fatigue are adding pressure to the price. Market analysts warn that a breakdown below $105,000 could trigger further selling, potentially leading to a decline towards the $92,000-$89,000 range.
Bitcoin’s recent price movement has also been impacted by structural risks, including the lack of sustained rally in BTC/EUR. This suggests that the current climb might be driven by the weakening US dollar rather than organic demand.
It remains to be seen how Bitcoin will continue navigating this volatile landscape. Investors should stay informed about market developments and proceed with caution before making any investment decisions.