Bitcoin (BTC) price faced its most significant whale distribution event since 2022 as large holders offloaded more than 100,000 BTC over the past month.
This occurrence added pressure to its price range and risking a sub-six-digit dip. CryptoQuant-verified author Caueconomy documented the unprecedented selling pressure in a Sept. 4 analysis.
Whale reserves declined by more than 100,000 BTC in thirty days, signaling intense risk aversion among Bitcoin’s largest investors.
The distribution represented the most substantial reduction in whale holdings since the 2022 market downturn.
The massive selloff pushed Bitcoin price below $108,000 and positioned the cryptocurrency at a critical juncture that could determine its near-term trajectory.
Whale Pressure Intensifies Market Volatility For Bitcoin Price
The whale selloff occurred as Bitcoin entered a volatile downtrend following its mid-August all-time high.
According to a Glassnode report, price action declined from peak levels to $108,000 before recovering toward $112,000, establishing a consolidation range between $104,000 and $116,000.
Large investors continued reducing their Bitcoin exposure as of early September. The persistent selling pressure threatened to impose downward momentum on the Bitcoin price
Risk aversion among major network participants reached levels unseen since the previous market cycle’s conclusion.
Whale distribution patterns historically preceded extended market corrections. The current selloff’s magnitude suggests price weakness anticipated by institutional and high-net-worth investors.
Or that they sought to realize profits after Bitcoin’s substantial gains throughout 2025.
Critical Support Zone Tests Market Resilience For Bitcoin Price
Glassnode analysis revealed Bitcoin’s position within a decisive price range that could determine future market direction.
The $104,000-$116,000 consolidation corridor represented the 0.85 to 0.95 quantile cost basis, where 85% to 95% of Bitcoin supply remained profitable.
Historical patterns have shown that this zone typically acts as a consolidation area following euphoric market peaks.
Breaking below $104,000 support would replay post-all-time-high exhaustion phases observed earlier in the current cycle.
Sustained recovery above $114,300 would signal demand reclaiming trend control.
UTXO Realized Price Distribution data showed investors accumulated Bitcoin during the pullback into the $108,000-$116,000 range.
The “buy-the-dip” behavior provided constructive long-term signals despite the risks of short-term weakness.
Accumulation steadily filled the price gap, demonstrating continued investor confidence at lower levels.
Short-Term Holders Face Profit Squeeze
Short-term holder profitability collapsed during Bitcoin’s decline to $108,000.
The percentage of short-term holder supply in profit dropped from above 90% to just 42%, creating a textbook cooling-off from overheated conditions to sudden stress.
Sharp profitability reversals typically trigger fear-driven selling from recent buyers.
The pattern explained Bitcoin’s rebound from $108,000 back to $112,000 as stressed sellers reached exhaustion.
Current price levels place more than 60% of short-term holder supply back in the profit zone, representing a neutral positioning.
Sustained recovery above $114,000-$116,000 would restore confidence among recent buyers.
Over 75% of short-term holder supply would return to profit at those levels, potentially attracting new demand for the next upward move.
Failure to reclaim these thresholds could maintain selling pressure from unprofitable positions.
Institutional Demand Shows Cooling Signs
Bitcoin spot ETF flows reflected weakening institutional appetite alongside the whale distribution.
The 14-day average of net inflows declined to 540 BTC per day from consistently exceeding 3,000 BTC daily since April.
Traditional finance buying power contracted significantly during the recent price pullback.
Futures market funding rates remained neutral around $366,000 per hour, sitting between bullish and bearish cycle extremes.
The metric suggested neither overheated speculation nor complete demand exhaustion. Further compression below $300,000 per hour would confirm broader demand weakness across derivatives markets.
CME open interest changes showed Bitcoin’s traditional finance demand primarily expressed through spot exposure rather than futures positioning.
Market Faces Decisive Moment
Bitcoin’s consolidation near $112,000 positioned the cryptocurrency at a critical decision point.
The combination of record whale distribution, weakened institutional flows, and fragile short-term holder profitability created conditions for potential breakdown below key support levels.
Breaking below $104,000 would risk extending the Bitcoin price correction toward $93,000-$95,000 levels observed in previous post-peak exhaustion phases.
Conversely, reclaiming $114,000-$116,000 would restore broad market confidence and potentially attract renewed institutional participation.
The largest whale selloff since 2022 tested Bitcoin’s market structure at a pivotal moment.
Sustained selling pressure from major holders, combined with cooling institutional demand, creates headwinds that could force a breakout below the accumulation range.