Bitcoin, the digital currency that’s more unpredictable than a Vogon poetry reading, dipped to a cool $112,828 on Aug. 22, marking a 1.4% drop for the day. While the retail crowd, those brave souls who are usually the first to jump ship, started to bail out, the whales, those deep-pocketed entities with more patience than a galactic hitchhiker, continued to scoop up the digital gold. 🐳 BTC, it seems, is having one of those days where you just want to stay in bed and read The Hitchhiker’s Guide to the Galaxy.
- Bitcoin is currently trading at $112,828, a mere 9.3% below its Aug. 14 all-time high of $124,128. That’s like finding out your spaceship is 9.3% slower than the speed of light-it’s still pretty fast, but it feels a bit disappointing.
- Retail demand is waning, but whales have quietly bought 16,000 BTC in the past week. It’s like they’re stocking up on intergalactic snacks before a long journey.
- Technically speaking, $112K is a key support level. If it fails, prices might plummet to the $105K mark. But hey, at least it’s not a black hole, right?
Bitcoin (BTC) is now 9.3% below its peak of $124,128, reached on Aug. 14, and has dropped 6% for the month. Daily spot volume has fallen 23.9% to $31.58 billion, signaling a significant slowdown in trading activity. It’s like the party got a bit quieter, and everyone’s just standing around awkwardly.
Derivatives activity is also on the decline, according to Coinglass market data. Open interest increased by 0.3% to $81.43 billion, but futures volume dropped 16.7% to $66.17 billion. Traders are being cautious, holding onto their positions rather than closing them. It’s as if they’re all waiting for the next big plot twist in the crypto saga.
Retail demand fades while Bitcoin whales step in
CryptoQuant analyst Maartunn, in an Aug. 21 post on X, noted that retail demand fell 5.7% over the past week. He described smaller buyers as “tourists” who are quick to leave when prices get too volatile. It’s like they’re at a space carnival and the rides get a bit too intense.
Retail has already left. 🤔
🔹️Retail Demand Change sits at -5.7%.
They’re the tourists of the crypto market here for the hype, gone when it fades.
– Maartunn (@JA_Maartun) August 21, 2025
Maartunn also pointed out that Bitcoin has retested the $112,000 zone, its former record high, twice in a short span. Repeated retests often weaken support and can signal deeper losses. But hey, every cloud has a silver lining, or in this case, a potential buying opportunity for the whales.
Caueconomy, a CryptoQuant contributor, reported in an Aug. 22 analysis that whales purchased over 16,000 BTC in the past seven days. This kind of accumulation often precedes a brief rebound, suggesting that some investors see the current levels as a bargain. It’s like finding a sale on spaceship fuel right before a long journey.
On-chain signals point to early BTC market reset
Short-term holders who bought between $113,000 and $120,000 are currently in slight losses, according to data from Glassnode. Their Spent Output Profit Ratio is between 0.96 and 1.01, indicating that they’re feeling a bit uneasy. In the past, local bottoms often form when this ratio dips closer to 0.9, signaling deeper capitulation. Current readings suggest that the market is in the early stages of a possible reset, even if it doesn’t confirm a bottom yet.
The Anatomy of a Local Bottom
1- When the market enters a post-ATH contraction phase, short-term price action is often shaped by how top-buyers react to growing unrealized losses.
Right now, a dense cluster of supply, accumulated between $113k and $120k since early July,…
– glassnode (@glassnode) August 21, 2025
Bitcoin price technical analysis
Bitcoin is currently testing the lower edge of its Bollinger Bands, a classic sign of oversold conditions but also a warning of heightened volatility. The Relative Strength Index is neutral but declining, and momentum indicators are bearish, with the MACD showing a negative crossover and short-term moving averages (10-50 day) indicating continuous pressure. It’s like the market is holding its breath, waiting to see what happens next.
Longer-term moving averages (100 and 200 day) continue to provide support, highlighting Bitcoin’s overall upward trend. Oscillators like the Williams percentage rate and stochastic RSI suggest a possible short recovery. If whales keep accumulating and the $112,000 support holds, Bitcoin might rally back towards $118,000. If not, it could dip to the next crucial support zone, which is in the $105,000-$108,000 range. It’s a wild ride, but then again, when isn’t it? 🚀💰
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2025-08-22 09:06