Trading Desk Insights
The crypto market faced renewed turbulence as Bitcoin slipped sharply to $112,000, driven by a cascade of whale-led selling. Data tied the move to a long-dormant address that rotated more than $2 billion worth of BTC into Ether, triggering rapid liquidations and a $45 billion market cap decline in minutes. On-chain records show over 24,000 BTC moved to the Hyperliquid platform since mid-August, with roughly 18,000 BTC already sold for 416,000 ETH. A large portion of the ETH has since been staked, suggesting the whale’s pivot is a long term strategy rather than short term speculation.
Technical signals remain fragile. Bitcoin’s pullback toward $112,000 brings key support at $111,600 back into play, with a decisive break risking a slide toward $110,000 or even the $105,000 zone highlighted by on-chain analysts. Momentum is skewed negative as BTC’s RSI trends near oversold conditions and liquidation heatmaps show limited bid support below spot levels. However, CME futures gaps to the upside provide potential fuel for a recovery if risk sentiment stabilizes.
Ethereum has emerged as the relative outperformer. Despite a four percent intraday drop during the flash crash, ETH quickly rebounded and remains in a rising channel after securing new all time highs above $4,600. Whale activity has been aggressively ETH positive, with nearly $1.3 billion of new purchases and leveraged longs totaling more than 135,000 ETH. Traders are now eyeing $5,200 to $5,500 as the next upside zone, although momentum indicators remain mixed. RSI sits in neutral territory while MACD has yet to confirm a sustained breakout.
Macro conditions continue to shape the backdrop. Powell’s dovish remarks at Jackson Hole sparked last week’s rally, but focus now shifts to the Fed’s preferred inflation gauge, the PCE index, due Friday. Markets are pricing a September rate cut, but analysts caution that hotter inflation or stronger labor data could complicate expectations.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
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