- A whale sold 24,000 BTC worth $2.7 billion, sparking a sharp $4,000 crash.
- Over $70 million in long positions were liquidated as BTC fell below $111K.
- Analysts see $111K as a prime accumulation zone despite short-term weakness.
Bitcoin faced intense selling pressure on Sunday as the world’s largest cryptocurrency slipped to $111,175, marking a nearly 3% daily drop.
The sharp decline was triggered by a whale unloading 24,000 BTC, worth approximately $2.7 billion, in one of the most significant sales of the year. Despite the sale, the whale still holds a massive 152,874 BTC, valued at more than $17 billion.
Whale Movements Reshape Market Dynamics
According to on-chain analyst Sani, the entity liquidated its entire 24,000 BTC balance, sending it to Hyperunite, a trading platform.
Interestingly, the coins had been dormant for over five years. On Sunday alone, 12,000 BTC was offloaded, and the whale continues to sell.
Prominent Bitcoin commentator Willy Woo pointed out that many of these early whales accumulated BTC at prices below $10, meaning it now takes over $110,000 of new capital to absorb each coin they sell.
The concentration of supply among long-term holders significantly slows Bitcoin’s upward trajectory, especially during moments of large-scale distribution.
Liquidation Cascade and Market Reset
The whale-driven selloff coincided with a major long liquidation event on Binance’s Bitcoin derivatives market.
Analyst Amr Taha revealed that over $70 million in long positions were wiped out as BTC dropped below $111,000, triggering a cascade of forced selling.
The liquidation heatmap showed that the liquidity pool under $112,000 was nearly obliterated, leaving late buyers with no support.
Related: Bitcoin (BTC) Price Prediction for August 24, 2025
As is often the case in derivatives markets, liquidation occurs when overleveraged traders fail to meet margin requirements. Exchanges forcibly close their positions with aggressive sell orders, creating what is known as a long squeeze.
The aftermath was evident as open interest plunged and Binance’s Cumulative Net Taker Volume fell to $1 billion. While painful in the short term, Bitcoin may be gearing up for another rally in the near future.
Analyst Highlights Potential Rebound Zones
Michaël van de Poppe, CIO of MN Fund, highlighted that Bitcoin’s current correction could provide a strong accumulation opportunity.
His chart suggests BTC may dip beneath recent lows before forming a base for a rebound, labeling the $111K region as a “great area to accumulate positions.”
With late longs flushed and leveraged excess reduced, BTC now has room to reclaim critical resistance levels at $114,800 and $116,800.
Related: Anthony Pompliano Predicts Bitcoin Rally in September Driven by Oversold Signals, Q4 Trends
A successful breakout above these zones could re-open the path toward $120,000 and potentially retest its all-time high liquidity zone near $123,000. On the downside, failure to hold $111,000 could expose Bitcoin to further declines toward $103,000–$100,000.
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