The cryptocurrency market continues to experience significant volatility as Bitcoin shows signs of bearish momentum amid unusual whale activity. Long-term Bitcoin holders, or “OG whales,” have been actively distributing large amounts of their holdings, raising questions about the asset’s near-term direction. Despite the selling pressure, market resilience persists, but analysts warn of potential deeper corrections ahead, especially if Bitcoin breaks key support levels.
- •Senior Bitcoin whales are selling off aggressively, with activity reaching over 1,000 BTC per hour.
- •The technical pattern of a bear pennant suggests Bitcoin could drop to $89,600 if support levels fail.
- •Bitcoin’s price has fallen more than 18% from its all-time high of $126,000, with widespread liquidations across derivatives markets.
- •On-chain data shows persistent large-scale selling by long-term holders since November 2024, indicating possible distribution phases.
Bitcoin OG Whales Keep Dumping
Bitcoin’s price has declined approximately 18.7% from its early October peak of $126,000, fueled in part by large outflows from long-held whale wallets. The BTC/USD pair now trades below key resistance levels, with traders concerned about a potential correction toward $89,600, based on a technical bear pennant pattern.
Charles Edwards, co-founder of Capriole Investments, noted on social media that “super whales are cashing out of Bitcoin,” intensifying fears of continued downward pressure. The recent sell-offs are partly attributed to long-term holders—often called “OG whales”—shipping Bitcoin to exchanges and other addresses, possibly for profit-taking or rebalancing.
The sell-off has been ongoing since late 2024, with data indicating these entities have moved large sums —sometimes over 1,000 BTC an hour— highlighting persistent distribution. A recent example involves notable whale “Owen Gunden,” who transferred 3,600 BTC, worth over $372 million, to exchange Kraken, suggesting active liquidation among these investors.
Meanwhile, some analysts believe this activity may not necessarily reflect panic sales. Willy Woo suggests that large transfers from long-term addresses could be for purposes such as moving funds to quantum-safe Taproot addresses or for custody rotations, rather than outright selling.
Bitcoin “Bear Pennant” Targets $90,000
Technical indicators point to a possible further decline. A bear pennant pattern on the six-hour chart indicates that if Bitcoin breaks below the support at $100,650, it could fall to roughly $89,600. This signifies a potential 12% drop from current levels if confirmed.
Market experts emphasize the importance of Bitcoin’s weekly close above the 50-week EMA at $100,900 to prevent deeper corrections below $92,000. A daily candle close below recent lows could signal a renewed downward leg, potentially pushing Bitcoin into a new bear market phase.
Despite the bearish outlook, traders remain cautious, with open interest remaining above $67 billion, suggesting that market participants are wary of further declines but also preparing for potential rebounds. As long-term support levels are tested, the market’s next move could determine the asset’s short-term trend.