Bitcoin Price Dips to $112K Amid Declining Retail Demand and Increasing Whale Accumulation

H2: Bitcoin Value Witnesses A Slight Dip As Retail Demand Wanes

As of August 22, the price of Bitcoin saw a slight dip to $112,828, recording a 1.4% decrease in its market value for the day. This drop comes amidst cooling retail demand for the cryptocurrency. Interestingly, while retail demand was dwindling, Bitcoin whales were busily accumulating.

According to the market trend, Bitcoin is currently trading at $112,828, a 9.3% fall from its all-time high of $124,128 on August 14. Retail demand seems to be on thin ice as it goes through a period of fading interest. However, in this same week, Bitcoin whales have managed to buy 16,000 BTC. The market’s technical indicators put $112K as the key support level, a failure of which could see the Bitcoin price slide towards $105K.

H2: Dwindling Trading Activity and Decreasing Momentum

For Bitcoin (BTC), it has witnessed a 9.3% dip from its peak value of $124,128, noted on August 14. On a monthly scale, the coin is down by 6%. This decrease is accompanied by a significant reduction in daily spot volume, plunging 23.9% to $31.58 billion, a fact that underlines the cooling momentum of trading activity.

Parallel to the weakening of the spot market, derivatives activity has also seen reduced activeness as reported by Coinglass’ market data. There has been a slight increase in open interest (0.3%) to $81.43 billion, and a higher slump of futures volume (16.7%) was also noticed, taking it to $66.17 billion. The combined impact of this drop in volume and the rise in open interest indicates that traders are choosing to hold onto their positions rather than opting to close them.

H2: Heavy Buyers Step In As Retail Demand Fades

An interesting trend marked by CryptoQuant analyst Maartunn is the falling retail demand, which saw a 5.7% decrease over the past week. Small buyers are touted to be tourists of the market, making quick exits when prices veer towards volatility. Maartunn added that Bitcoin has retested its previous peak of $112,000 twice in short succession. Such retests often foreshadow deeper losses, leading to a weakened support level.

H2: Whales Seize the Opportunity of Declining Prices

Contrary to the trend seen among small buyers, large holders are buying more. CryptoQuant contributor Caueconomy noted that Bitcoin whales had bought over 16,000 BTC in the past week. Such recording of large-scale acquisition often precedes a quick market rebound, enriching the perception of the current market levels as a buying opportunity.

H2: The Market Signals an Early BTC Market Reset

As per data shared by Glassnode on August 21, short-term holders who bought Bitcoin at prices between $113,000 and $120,000 are now making slight losses. This is indicated by the Spent Output Profit Ratio coming in at between 0.96 and 1.01. This ratio suggests that there might be a local bottom when it dips closer to 0.9, indicating a deeper capitulation. Currently, the readings hint at the early stages of a possible market reset.

H2: Analyzing Bitcoin’s Price Trends

On the technical side of things, Bitcoin is currently testing the lower edge of its Bollinger Bands. This signals oversold conditions and the possibility of increased volatility. Momentum indicators have rolled into bearish terrain with the MACD indicating a negative crossover and short-term moving averages showcasing continuous pressure.

H2: Bitcoin’s Buying Potent

If Bitcoin whales keep up their buying spree and manage to hold the $112,000 support, there is a possibility that Bitcoin might shift to recovery mode and reach $118,000. If this level doesn’t hold, Bitcoin might find itself descending towards the subsequent crucial support zone, tracking between the $105,000 – $108,000 range.