After a volatile week that saw a significant sell-off from a long-dormant whale investor, the Bitcoin market is showing tentative signs of a bullish recovery. Selling pressure appears to be easing after ten consecutive days, with key on-chain metrics suggesting that buyers may be preparing to regain control. However, the market remains in a delicate position as it navigates conflicting technical signals.

Whale Dumps 24,000 BTC, Triggering Sharp Decline

The recent market turbulence was initiated last weekend when a major Bitcoin holder, colloquially known as a ‘whale’, sold 24,000 BTC. The sale triggered a rapid price drop of approximately $4,000 within minutes. The wallet responsible for the transaction had been inactive for over five years before its contents were transferred to the Hyperunite trading platform and fully liquidated.

According to Sani, founder of the on-chain analytics firm Timechain Index, the investor sent an initial 12,000 BTC on Sunday to begin the sale. Despite this significant liquidation, the investor remains a substantial holder, with 152,874 BTC still in their possession. Following the sell-off, Bitcoin’s price continued to slide, temporarily dipping below $110,000 on the 26th before staging a modest recovery to $111,693.

Analysts Eye Key Support as Conflicting Signals Emerge

Market analysis from the research platform Bitcoin Vector places the current critical support level for Bitcoin at $109,100, with a major resistance level at $121,600. While the platform’s Bitcoin Structural Shift Indicator has flipped back to bullish, signalling a strong potential for a structural change, other metrics present a more mixed picture. Chart analysis points towards a bullish macro structure, yet short-term price momentum remains negative.

Prominent Bitcoin analyst Willy Woo, who is associated with Bitcoin Vector, commented that much of the current supply pressure is coming from very early investors who acquired their holdings in 2011. “They purchased BTC for under $10,” Woo explained, “meaning that for every coin they sell, over $110,000 in new capital is required to absorb it.”

Ethereum Targets $5,000 Amidst Unusual ‘Alt-Season’

In the wider cryptocurrency market, analysis from Altcoin Vector suggests Ethereum (ETH) is reversing from recent bearish pressure and is now targeting the $5,000 mark. Analysts note that this price level is not merely a resistance line but a “breakout wall” for ETH. A decisive break above this point could unlock the next phase of its bull run, though it would also likely form a significant profit-taking zone.

The market is technically considered to be in an ‘alt-season’, yet an unusual situation persists where the bullish impulse has not spread across the broader altcoin market. Capital rotation appears to be concentrated primarily in ETH and a select few other altcoins. It is anticipated that if Bitcoin establishes a firm recovery, this momentum could broaden, converting the relative strength of a few assets into a market-wide cycle.

Exchange Flows Signal Potential End to Selling Pressure

After ten consecutive days of net inflows to exchanges—a strong indicator of selling intent—the trend has finally reversed. Data shows that for the first time in this period, there was a minor net outflow of -192 BTC, suggesting that selling pressure may be abating and buying interest is re-emerging.

The net inflow to exchanges peaked on August 24th at 6,775 BTC, a multi-month high, and remained elevated on August 26th with over 4,239 BTC. This sustained pressure has kept Bitcoin trading within a narrow range of $108,600 to $112,300 over the past week. Further bolstering a cautiously optimistic outlook, the Net Unrealized Profit/Loss (NUPL) metric for short-term holders has fallen to a three-month low, a level that has historically preceded price rebounds. While the shift is still tentative, these signs suggest buyers are beginning to test the market, with the potential for a bullish continuation if the trend holds.