Bitcoin lost 12% of its historical high

The price of bitcoin BTC $109,441.00 Mezo Wrapped BTC -1.15% Market capitalization $40.07 million VOL. 24 hours $2.29 billion has come under pressure after large-scale selling by large holders, institutions, and short-term traders. Market veteran Peter Brandt said that bearish reversal patterns have formed on the charts, which increase the risk of further decline. In his opinion, in order to remove the negative sentiment, BTC must return above $ 117,570, otherwise a sharp drop is possible.

Bitcoin’s drop from its all-time high of $ 124,457 to $ 108,762 meant a loss of more than 12% of its value. In a few weeks, the total capitalization of the crypto market decreased from $ 4.2 trillion to $ 3.76 trillion, i.e. by $ 400 billion. Brandt emphasized that large sell orders should not be ignored, as it is supply that often forms price peaks. He added that he is not currently taking a clear bullish or bearish position, but only points out the importance of levels and patterns.

The so-called OG whales are also increasing pressure on the market. According to Lookonchain, a player called «bc1qlf» recently sold 750 BTC for $ 83.1 million and a total of 1,750 BTC for $ 189.3 million, recording a profit of about $ 550 million. He purchased 5,000 BTC 12 years ago when its price was $ 332. An additional signal of concern was provided by the CryptoQuant indicator — the 30-day average Taker Buy/Sell Ratio fell to its lowest level since May 2018.

Seasonality is also putting pressure: historically, September has been a weak month for bitcoin. According to Bitwise, the average price increase in August was 0.23%, while in September it was minus 4.68%. Additionally, investors are awaiting PCE inflation data and options expiry, which could add to the volatility.

After falling below $ 109,000, the market reacted with a «drawdown buyback,» and BTC rose to $ 112,424. At the same time, trading volumes dropped by 19% overnight, and traders remain cautious. Analyst Michael van de Poppe pointed to a «massive bullish divergence» for altcoins, while QCP Capital draws attention to the publication of Nvidia’s quarterly reports. In recent months, this company’s quotes have been correlated with the price of bitcoin, so the tech giant’s recovery could be a catalyst for a new wave of demand for cryptocurrencies.