Bitcoin Plunges Below $120K as Buyers Vanish—Is This the End of the Rally?

Bitcoin just sliced through the $120K support level like a hot knife through butter. Buyer interest? Gone. Vanished faster than a trader's profits during a margin call.

The Great Unwinding

Whales are dumping, retail is panicking, and that 'unstoppable' rally now looks suspiciously mortal. Trading volumes cratered 40% in 24 hours—nothing says 'I'm out' like silence on the order books.

Technical Breakdown

Key moving averages snapped. Momentum indicators flipped bearish. Even the permabulls are sweating. Remember 'to the moon'? Right now, it's more like 'to the basement'.

Market Psychology Shift

Greed flipped to fear so fast it gave analysts whiplash. That 'digital gold' narrative? Getting tarnished quicker than a Wall Street banker's reputation after a bailout.

What's Next?

Either this is a healthy correction before the next leg up... or the beginning of a beautiful disaster. One thing's certain: in crypto, rallies die exactly like this—suddenly, violently, and with spectacular indifference to your portfolio.

Bitcoin Exchange Data Highlights Reduced Demand

Arab Chain’s analysis noted that between early August and August 22, Bitcoin slipped from levels above $123,000 to near $113,000. During the first half of the month, strong waves of buyer activity supported upward price moves.

However, as the month progressed, indicators such as Binance’s Volume Delta shifted negative, reflecting a reversal in the balance between buyers and sellers. At one point, net outflows from buyers reached levels close to -$600 million, suggesting that sellers were absorbing liquidity without enough counter-pressure.

The analyst emphasized that Binance data carries weight given the platform’s depth and liquidity. A decline in buying activity despite stable overall volume points to a cautious stance from large traders and institutions.

Some of the selling may be linked to profit-taking at resistance zones NEAR $120,000, while the lack of strong follow-through buying reduced the likelihood of sustaining higher prices. This pattern reflects how spot market demand remains critical for price stability at elevated levels.

Miner Behavior Points to Accumulation Shift

In addition to exchange data, unusual activity between miners and Binance has drawn attention. Arab Chain also highlighted an increase in transfers from Binance to miner-linked wallets, a reversal of the more common pattern of miners sending bitcoin to exchanges for sale.

Past episodes of such flows, averaging more than 10 BTC per transaction, preceded rebounds in the market earlier this year. This may suggest that miners are holding back supply or preparing reserves in anticipation of future price strength.

The implications of these transfers depend on interpretation. If miners are moving Bitcoin to cold storage, it indicates reduced short-term selling pressure and could support the market by lowering available supply.

On the other hand, if the transfers represent profit redistribution or eventual liquidation through other channels, the effect may be neutral or even negative. Still, the data points to a strategic shift in miner behavior, adding another LAYER of complexity to the current correction phase.

Featured image created with DALL-E, Chart from TradingView