TLDR
- Bitcoin fell below $109,000 after a whale sold 24,000 BTC worth $2.7 billion
- Market liquidations hit $930 million with 205,000 traders affected
- All Bitcoin holder groups now selling, creating widespread distribution pressure
- Seasonal ghost month period historically brings 21.7% average declines
- $105,000 identified as critical support before potential drop to $90,000 range
Bitcoin crashed to a seven-week low below $109,000 during Tuesday’s Asian trading session. The sharp decline followed a massive whale transaction that shook market confidence.
A single entity dumped 24,000 Bitcoin worth over $2.7 billion in one transaction. This large sale triggered a $4,000 price drop within hours of execution.
The selloff created chaos across cryptocurrency exchanges. Total crypto market capitalization plunged $205 billion to $3.84 trillion, marking the lowest level since August 6.
Mass Liquidations Hit Leveraged Traders
Over 205,000 traders faced liquidation as positions unwound rapidly. Total liquidations exceeded $930 million, with long Bitcoin positions suffering the heaviest losses.
Exchanges reportedly dumped additional crypto assets to manage the liquidation cascade. The forced selling amplified downward pressure on Bitcoin and other cryptocurrencies.
CoinGlass data shows the liquidation event ranks among the largest in recent months. Leveraged long positions dominated the casualties as prices fell through key support levels.
Bitcoin Price Prediction
Glassnode analysis reveals all Bitcoin wallet cohorts have entered distribution mode. The synchronized selling across different wallet sizes creates uniform downward pressure.
Smaller holders between 0-1 BTC continue accumulating since recent peaks. Mid-size wallets holding 1-10 BTC resumed buying below $107,000 levels.
However, larger holders show clear distribution patterns. Wallets containing 10-100 BTC turned net sellers after Bitcoin crossed $118,000. Whale wallets above 1,000 BTC maintain consistent selling activity.
The 100-1,000 BTC group shows mixed behavior around $105,000, establishing this level as critical support. If Bitcoin loses this zone, analysts expect accelerated selling toward $90,000-$92,000.
Seasonal Weakness Compounds Selling Pressure
Bitcoin’s current decline aligns with historical seasonal patterns. The August-September period typically brings weakness to cryptocurrency markets.
Asia’s ghost month runs from August 23 to September 21 this year. This cultural period often coincides with reduced trading activity and profit-taking behavior.
Historical data shows Bitcoin averages 21.7% declines during ghost month periods since 2017. Previous corrections reached 39.8% in 2017 and 23% in 2021.
Realized price data shows one to three-month holders averaged $111,900 cost basis. Longer-term holders from six to twelve months sit much lower at $89,200-$91,630.
The wide gap indicates heavy recent buying near highs versus established holders with lower cost bases. This creates potential for forced selling if support levels break.
Bitcoin currently trades around $110,000 after testing the $109,000 floor. The 12% correction remains shallow compared to historical bull market pullbacks of 24-36%.
