Bitcoin has come under renewed selling pressure, falling to around $115,500 with a 2% decline over the past week.
What began as a mild pullback has turned into a broader technical breakdown, as multiple bearish catalysts converge—including whale movement, weakening ETF demand, and rising liquidation volume.
The sharpest warning came on July 25, when a previously dormant whale address transferred over 30,000 BTC (worth around $3.5 billion) to exchanges. This move added to weeks of similar large transfers, totaling more than 80,000 BTC sent to trading platforms—clearly adding to sustained sell-side pressure. These flows, tracked by Lookonchain, are now being seen as a central cause of the current retracement.
Adding to the bearish momentum is a noticeable cooldown in Bitcoin ETF inflows. Assets under management across spot ETFs grew only 1.1% this week—rising from $151.33B to $151.49B. That’s a steep decline compared to the 8.9% pace seen just weeks ago, according to Global Metrics.
Technical Breakdown and Volume Surge
The bearish sentiment is confirmed on the charts. Bitcoin has broken below its 7-day simple moving average ($118,153) and also dipped under the 23.6% Fibonacci retracement level at $118,859. Meanwhile, the MACD histogram flipped sharply into negative territory, showing a reading of -478.92—a strong indication that bullish momentum is fading fast.
Adding weight to this technical weakness, 24-hour trading volume surged 83% to $820 billion. This spike is interpreted not as accumulation, but rather distribution—suggesting that whales are actively exiting positions.
Leverage has also unwound rapidly. More than $530 million in long positions were liquidated in just one day, with $380 million of that tied to Bitcoin alone. It’s the largest daily wipeout in recent weeks and signals growing stress in overleveraged markets.
Institutions and Retail Both Show Caution
Coinbase’s latest Q2 earnings report showed a 39% quarter-over-quarter decline in trading revenue, a clear indicator that retail activity is fading. This reduction in retail participation is limiting the bid-side liquidity needed to absorb the sudden influx of BTC supply.
Whether institutions will step in as buyers remains uncertain. Many are watching Bitcoin’s behavior near the $115,724 support level for signs of stabilization. Should that level hold, and ETF flows recover, confidence could begin to return. But for now, the trend remains pressured.
Final Thoughts: Can Bitcoin Hold the Line?
Bitcoin’s recent slide appears to be the result of powerful supply-side factors meeting a weakened and cautious demand landscape. With whale sell-offs accelerating and leveraged traders shaken out, the question becomes whether institutions will view the $115K zone as a buy-the-dip opportunity—or allow further downside to unfold.
Keep a close eye on ETF inflow metrics and any resurgence in trading volume quality to gauge the market’s next move.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-price-drops-below-116k-as-whale-sell-off-rattles-market/