Bitcoin Price To Face More Bloodbath? Historic Double Top Setup Emerges

Key Insights:

• Bitcoin price faced a possible double top, with over $500 million liquidated in one day.
• Whales and institutional buyers added large amounts during the dip to buy more BTC.
• Traders watched $112,000 support and awaited Powell’s August 22 speech.

Bitcoin price came under pressure recently after analysts warned of the impact of a possible double top pattern.

With $500 million liquidated in one day, traders are looking at $112,000 support amid a possible macroeconomic shift.

Notably, large investors’ buying and new institutional purchases shaped the debate.

Bitcoin Price Echoes 2021 Warning Signs

Bitcoin price is facing a test this week as analysts pointed to signs of a double top pattern similar to 2021.

A recent research published by Swissblock hinted that the recent weekly close was not strong. The firm warned that without a reversal, the rally of the past month could stay capped.

Charts compared the current 2025 cycle to the 2021 peak, when Bitcoin hit record highs before sliding lower.

The update stressed that the structure looked fragile, and distribution risk was present. This meant investors could see more selling pressure unless the trend changed.

Swissblock added that the situation today was not the same as four years ago. In 2021, Bitcoin peaked at the start of quantitative tightening and a rate hike by the Federal Reserve.

In 2025, the economic setting is moving toward quantitative easing and possible rate cuts.

This raised the question of whether an easier policy would support Bitcoin despite weak technical signals.

In addition, market observers also focused on recent liquidations. A recent post by market watcher Jussy_world on X said over $500 million was cleared in 24 hours.

He noted that Bitcoin had reversed from $124,553 and was now looking at $112,000 as the next major support.

He added that investors were also waiting for Federal Reserve Chair Jerome Powell’s speech on Friday, August 22, which could move markets.

Whale Buys and Institutional Moves

Interestingly, large buyers entered the market as prices fell. Adam Back, the CEO of Blockstream, wrote on X that a whale connected to Bitfinex had started buying again.

He said the account was picking up 450 Bitcoin a day, or about $600 every second, at a price near $115,500.

He compared the whale’s steady buying to the panic selling seen from some traders. Other institutions also added more Bitcoin during the dip.

For example, Strategy confirmed that it bought 430 Bitcoin for $51.4 million at an average price of $119,666.

The company said in its SEC filing that the purchase was funded by raising over $50 million from share sales.

With the latest buy, Strategy now holds 629,376 Bitcoin at an average cost of $73,320.

In Japan, Metaplanet also announced a new purchase as the company added 775 Bitcoin, taking its total to 18,888 BTC.

Market data showed Metaplanet was now the seventh largest holder of Bitcoin, closing in on Riot Platforms.

Reports noted that Metaplanet’s exposure gave it a rating of 18.67x, which the firm said showed its position against price swings.

Market and Bitcoin Price Action Awaits Powell’s Speech

It is worth noting that the Bitcoin price traded near the flatline at $114,700, down from its new all-time high of $124.5k during writing.

Notably, analysts said the market was stuck between weak technical signals and possible support from macro liquidity.

The key test was whether the $112,000 level would hold in the short term. Still, investors are looking forward to Powell’s remarks on August 22.

Traders said his comments could give direction on interest rates and easing measures.

Swissblock noted that short-term weakness remained, but that easier monetary policy could still play a role in shaping Bitcoin’s path.

For now, the market weighed fragile technical patterns against fresh institutional demand and the return of whale buyers.

The next few days were seen as a test that could shape Bitcoin’s performance for the rest of the year.