Bitcoin (BTC) is exhibiting signs of technical weakness after a breakdown below a critical short-term support level. This development coincides with significant Bitcoin transfers from a prominent entity, often referred to as an "insider" whale, to major cryptocurrency exchanges.
Bear Flag Setup Targets BTC Prices Below $100,000
Analysis of the BTC/USDT 4-hour chart reveals that Bitcoin has fallen below the lower trendline of a bear flag pattern. This pattern is a recognized continuation formation that typically indicates further downward price movement following a period of consolidation.
The projected target derived from this pattern breakdown suggests a potential move toward the $98,000 level. This price point aligns with the swing low observed in mid-June.
Furthermore, Bitcoin is currently trading below its 20-period (green) and 50-period (red) exponential moving averages (EMAs) on the 4-hour chart. This area, situated between $109,000 and $110,000, is now acting as a resistance zone. A failure to reclaim this region as support could further validate the bearish outlook suggested by the technical setup.
Mysterious Whale Bets More on Bitcoin Dropping
The emergence of Bitcoin's bear flag pattern occurs against a backdrop of renewed activity from a notable whale entity accused of market manipulation.
This same entity is responsible for profiting over $200 million by shorting Bitcoin during the market downturn triggered by China tariffs two weeks ago. This individual, identified as the "insider" whale and "$10B Hyperunit Whale," has reappeared, initiating multiple substantial bearish positions.
In its latest move, the whale has transferred 5,252 BTC, valued at approximately $588 million, to prominent exchanges including Coinbase, Binance, and Kraken. This data was reported by Arkham.
Such substantial inflows to exchanges are often interpreted as indicators of an intention to sell or to hedge existing positions.
Concurrently, the whale has opened a new short position on Hyperliquid valued at $234 million. This position was initiated near the $111,190 per BTC price level. It is already showing approximately $6.7 million in unrealized profit, signaling a strong conviction that the current downtrend has further room to develop.
Crypto analyst CryptoNobler described the whale's actions as "pure manipulation." The analyst suggested that the whale might intentionally offload Bitcoin holdings with the expectation that prices will fall towards the targets of its short position.
While the exact identity of the whale remains unconfirmed, blockchain investigators have linked the wallet to Garrett Jin, the former CEO of the now-defunct exchange BitForex.
In now-deleted social media posts, Jin reportedly acknowledged the connection after an exchange with Binance CEO Changpeng Zhao (CZ) on X. He later asserted that the funds belong to clients and not to him personally.
Crypto analyst Quinten François has expressed skepticism regarding the alleged link between the Hyperliquid whale and the former CEO of BitForex. François suggested that the connection might appear "too neat to be credible" due to the circumstantial nature of the evidence presented.