Bitcoin (CRYPTO: BTC) has retraced 3% and fallen below $118,000, with a ‘whale’ identified as the potential seller triggering the price downturn.
What Happened: On-chain data provder Lookonchain flagged on Tuesday that a whale owning 80,009 BTC, valued at about $9.46 billion, has started liquidating his position.
So far, 40,009 BTC was transferred to Galaxy Digital. Galaxy Digital has already deposited 6,000 BTC — $706 million — to exchanges Binance and Bybit, signaling active distribution.
The news drew strong attention on social media.
Market commentator Nuke Capital noted how this move came near range lows and coincided with the CPI data release day.
He called it a psychological play and wished the bears "good luck," as the selling might add downward pressure.
Also Read: Why Did Bitcoin, Ethereum, XRP, Dogecoin Flip Bearish Ahead Of The CPI Inflation Data Release?
What's Next: TheDefiVillian pointed out the whale is only halfway through selling.
Historically, once large sell-offs near completion, markets often start to anticipate the end of selling pressure, triggering sharp rebounds.
This "whale dump" might be the perfect re-entry opportunity for market participants that want to get long on Bitcoin, he concluded.
Daan Crypto Trades noted Bitcoin is currently at a critical support zone near $118,000, with more than $3 billion in open interest above this level, much of it likely underwater longs.
The recent price weakness is largely due to the whale offloading part of his 80,000 BTC stack through OTC and exchanges, causing significant spot selling pressure.
This has pushed funding rates higher as leveraged longs try to counterbalance the selling.
If prices fall further, a liquidation cascade could follow.
But if the whale's selling slows, it may signal the end of the shakeout and pave the way for a strong recovery.
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