Bitcoin (BTC) critical week fading momentum begins with the asset falling below $112,000. Liquidations have surpassed $310 million, and more than $40 million of token unlocks are pending, stifling optimism.
Bitcoin Falls Below $112K Following Whale Selloff
The price of Bitcoin collapsed when a whale added 24,000 BTC into supply. The colossal trade led to a sell-out, driving Bitcoin below its level of critical support at $112,000. Consequently, over $310 million of long positions were washed out on large exchanges.
Although this whale did not leave to fiat, the transfer directed capital into Ethereum. This has caused alarms of changing confidence among institutional investors. The sell-off took place as part of a generally weak market, contributing to volatility and uncertainty.
Market Sentiment Shifts as Indicators Weaken
Technical indicators signal weakness in momentum. The Bull Score Index, an indicator of buying power, fell from 70 to 50 over a week. This movement is a reversal from “Bullish Cooldown” to neutral.
Volume behavior also reinforces the bearish view. Volumes remained low during recent price action, indicating weak conviction in recent bounces. Traders are now warned by analysts to be mindful of the $108,000 zone, which is a psychological and technical level of support.
$40M Token Unlocks May Bring Pressure
Additional selling pressure would also be provided by more than $40 million worth of tokens unlocking this week. Of particular interest, the ZND token is unlocking 13.4% of its circulating supply. Events like these put supply onto the open market and pose bearish price pressure.
The unlocks are taking place while the overall crypto market capitalization is around $1.1 trillion, a record that it has not been able to surpass. In the absence of a strong bull catalyst, such incidences could intensify underlying bear pressure.
Bitcoin Bull Run in Doubt
The convergence of whale activity, weakening technicals, and unlocks has been a source of controversy about the present bull run. Bitcoin was unable to maintain above its 50-day exponential moving average, which is typically a sign of fading bullish momentum.
Some traders believe that this is a mid-cycle correction rather than a full-blown reversal. But others warn that if Bitcoin cannot regain $112,000 shortly, overall market mood can turn to sustained bearishness. With September having been a wild month for crypto historically, caution is mounting.
The waning bullish pressure, fueled by a $310 million liquidation and $40 million token unlocks, subjects Bitcoin to fresh pressure. If the pullback is the peak of the bull cycle or merely a fleeting correction is yet to be confirmed. The next few days, however, will have to dictate Bitcoin’s immediate future.
