- Bitcoin long-term holders reduced their holdings by 290,000 BTC since July, the lowest in three months.
- The exchange whale ratio climbed to 0.53, a level that triggered sharp declines in August.
- A hidden bearish divergence between Bitcoin’s price and RSI points to a possible continuation of the downtrend.
- Critical support levels sit at $110,500 and $107,200, while a breakout above $113,500 could flip momentum bullish.
Bitcoin Faces Pressure Despite Short-Term Bounce
Bitcoin (BTC) is holding near $112,100, up about 1% in the past week after bouncing from $107,200. While September kicked off with some relief following August’s 6% decline, the broader outlook still leans negative.
Month-on-month, Bitcoin remains down about 9%, and fresh on-chain and technical signals suggest the bears may not be finished. The key question now is whether BTC can defend $112,000 or whether further downside is looming.
Long-Term Holders Are Trimming Bitcoin Stash
One of the most concerning signals comes from long-term holders. Historically, these wallets accumulate and rarely sell during weakness. But since mid-July, this trend has shifted.
- On July 13, long-term holders owned 14.72 million BTC.
- By early September, that figure dropped to 14.43 million BTC, the lowest in three months.
That’s a reduction of 290,000 BTC, suggesting that even patient investors are reducing exposure or selling into each price rebound.
Bitcoin Whales Keep Pushing Coins to Exchanges
Whales are also adding to bearish pressure. The exchange whale ratio — which tracks how much inflow comes from the top 10 largest wallets — has risen from 0.44 (Sept 5) to 0.53.
Also Read: Bitcoin Whales Trigger Alarm as Price Faces Drop to $105K
The last time this metric reached similar levels on August 21, Bitcoin fell from $116,900 to $108,300 in just a few days.
On-chain data shows whales have consistently sent coins to exchanges over the past 30 days, even on minor price rallies. This indicates that supply is being readied in anticipation of further declines.
Bearish Divergence Supports a Downtrend
Technical indicators are also flashing warning signals. Between August 28 and September 8, Bitcoin formed lower highs, while the Relative Strength Index (RSI) printed higher highs.
This mismatch, known as a hidden bearish divergence, often signals a continuation of the downtrend. If momentum weakens further, Bitcoin risks retesting support levels.
- Key support: $110,500 — if this breaks, BTC could slide to $107,200 and potentially $103,500.
- Key resistance: A close above $113,500 would invalidate the bearish outlook and restore bullish control.
While Bitcoin’s September bounce offered short-term relief, on-chain and technical signals lean bearish. Long-term holders reducing exposure, whales sending BTC to exchanges, and a bearish divergence on the RSI chart all suggest caution ahead.
For now, defending $110,500 remains critical. Traders should watch whether Bitcoin holds above this support or breaks down to lower levels.