Bitcoin’s Double Whammy: Whale Activity Slows as Futures Selloffs Threaten $105,000 Plunge
Bitcoin faces a perfect storm as two powerful forces converge—whale accumulation hits the brakes while futures markets unleash a selling frenzy.
The Whale Exodus
Major holders suddenly pull back from accumulation patterns that previously fueled bullish momentum. Their retreat creates a vacuum in buying pressure just as institutional players ramp up their exits.
Futures Market Unraveling
Derivatives traders dump positions at an alarming rate, triggering cascading liquidations across major exchanges. The leverage unwind threatens to accelerate downward momentum beyond typical corrections.
Technical Breakdown Looms
With both retail and institutional support weakening simultaneously, Bitcoin's price structure faces its most severe test since the last cycle low. The $105,000 level emerges as critical support—a breach could trigger algorithmic selling across trading platforms.
As traditional finance veterans nod knowingly about 'irrational exuberance,' the crypto market faces its most consequential week of 2025. Sometimes the most sophisticated trading algorithms can't compete with old-fashioned herd mentality.
Top Traders Slash Futures Exposure, Whales Retreat
BTC’s steady dip in the past week has triggered a steep reduction in perpetual futures positioning among key holders, highlighting waning confidence in the coin’s near-term outlook.
According to Nansen, crypto’s top 100 wallet addresses have cut their perpetual futures exposure by 1,526 contracts in the past seven days, a 65.7% decline.
: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily crypto Newsletter here.
When these large holders scale back their positions, it removes liquidity from BTC’s perpetual futures market, leaving it more vulnerable to volatility and sharper downside moves.
The drawdown also suggests that these major traders are unwilling to absorb risk until clearer bullish signals emerge, worsening the bearish momentum.
Moreover, in addition to these top wallets, BTC whales holding between 10,000 and 100,000 coins have also contributed to the current downturn.
Per Santiment, this cohort of coin holders has reduced their supply by 1% in the past seven days, selling 20,000 BTC.
Historically, sustained whale buying has provided support for BTC during downturns. With these large holders now stepping back, the asset lacks the strong buy-side pressure needed to prevent further declines.
Could Price Slip Toward $103,000?
On the daily chart, BTC’s falling Relative Strength Index (RSI) supports this bearish outlook. This key momentum indicator stands at 37.88 at press time and is in a downtrend, signalling falling demand.
The RSI indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and may witness a correction. Conversely, values below 30 indicate that it is oversold and due for a rebound.
At 37.88 and falling, BTC’s RSI signals that the cryptocurrency is gradually entering oversold territory. This indicates that bearish momentum may continue and could push the coin’s price toward $107,557.
BTC could extend its dip to $103,931 if this support floor fails to hold.
On the other hand, if sentiment improves and accumulation spikes, BTC could witness a rebound and attempt to climb back above $110,034.
