BTC Price Warning Sign? Bitcoin Whales Start Selling Before Fed Cuts

TL;DR

• Long-term Bitcoin holders present heavy exercise, traditionally seen close to market tops or correction intervals.
• Whale balances drop to ranges final seen in 2018, suggesting continued quiet distribution.
• Bitcoin breaks multi-week downtrend, however profit-taking and whale exits increase short-term warning.

Long-Term Holders Begin Moving Coins

Recent information exhibits that wallets holding Bitcoin for lengthy intervals have began to maneuver their BTC. This is tracked by the Long-Term Holder Binary Spending Indicator, which is now exhibiting elevated exercise from these older wallets. In the previous, comparable spikes have taken place close to worth peaks and earlier than broader corrections.

WHALES ARE DUMPING #BITCOIN, A SIGN OF TROUBLE AHEAD?

A key on-chain indicator, the long-term holder binary spending indicator, exhibits previous Bitcoin whales are starting to promote their holdings.

Historically, these actions have preceded main market corrections, signaling a… pic.twitter.com/c3Xx78Up9v

— Bitcoinsensus (@Bitcoinsensus) September 3, 2025

Bitcoin is presently buying and selling close to native highs. Market watchers observe that the timing of this conduct could also be linked to expectations round potential coverage modifications by the Federal Reserve. As shared by Bitcoinsensus,

“whales could be anticipating a market-wide correction as soon as the Fed begins reducing charges.”

The sample is being carefully watched, given its historical past of aligning with key turning factors in BTC’s worth.

Notably, Bitcoin’s internet realized revenue and loss information present that many holders have been promoting at a revenue. July and August noticed a number of spikes in realized good points, which came about throughout worth will increase. These intervals match latest highs available in the market and recommend holders could have been lowering publicity as costs climbed.

At the time of writing, Bitcoin was priced at round $111,200, with reasonable good points over the previous 24 hours and the previous week. Most transactions nonetheless seem like taking place above value, that means promoting will not be coming from loss-driven exits. The tone available in the market appears calm however cautious, with extra individuals selecting to take income.

Average Whale Holdings Continue to Drop

The common Bitcoin steadiness held by giant entities is now at its lowest degree in practically seven years. According to Glassnode, wallets holding between 100 and 10,000 BTC presently maintain about 488 BTC on common. This is a degree final seen in December 2018. The decline started in November 2024 and has continued into the current.

Consequently, this regular lower exhibits that bigger holders have been progressively lowering their positions. Whether this pattern continues will rely upon upcoming market situations and exterior components like macroeconomic coverage and capital rotation.

Price Breaks Out of Downtrend

On the chart, Bitcoin has closed above a downward trendline that had held since early August. The transfer was identified by Rekt Capital, who noted,

“BTC has Daily Closed above its multi-week Downtrend.”

This breakout would possibly point out that the downtrend is weakening. Going additional up from this level will depend on the flexibility of Bitcoin to carry above the trendline. Holding this degree on a retest would possibly strengthen short-term restoration prospects. Failing that, purchaser momentum might resume.

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