Bitcoin Bull Run at Risk as Whales Sell and Retail Buys In Late

The tug of war between Bitcoin bulls and bears since the asset reached its all-time high of $122,054 on July 14 has kept prices largely rangebound.

Over the past week, BTC has faced resistance at $116,952 while finding support at $111,855, reflecting a market struggling to pick a direction. With uncertainty climbing, signs are beginning to emerge that the bull phase might be nearing its end.

Bitcoin Bull Run May Be Nearing Its End

In a recent report, pseudonymous CryptoQuant analyst Arab Chain noted that leading coin BTC may be approaching the final phase of its current bullish cycle. The key warning sign: a sustained inflow of coins from whales into Binance.

According to Arab Chain, since late July, BTC whales have moved between $4 billion and $5 billion worth of coins to the exchange, a pattern associated with distribution phases.

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BTC Binance Whale to Exchange Flow. Source: CryptoQuant

A spike in whale inflows to exchanges signals that large holders are preparing to sell. This can contribute to weakening general bullish momentum and heighten the risk of further BTC price declines.

Moreover, the analyst found that retail participation has steadily risen over the past few weeks, even amid BTC’s lackluster performance. Arab Chain pointed out that this “implies late-stage buying, which may face downside risk if the correction deepens.”

It is key to note that a spike in retail activity often has a noticeable positive impact on price due to the frequency with which these traders move their coins. However, despite strong accumulation from retail traders over the past few weeks, “the market lacks bullish follow-through, signaling potential exhaustion.”

This trend of sustained whale inflows to exchanges and rising late-stage retail buying paints a distribution pattern where large holders offload positions onto eager retail traders. If history repeats, this setup signals that BTC’s bullish momentum is fading, increasing the likelihood of a steeper market correction in the near term.

BTC Eyes $120,144 on Breakout, But Bears Threaten Deeper Drop

An uptick in selloffs could strengthen bearish control on the BTC market and increase the downward pressure on its price. If selling continues, the coin’s value could test support at $111,855. If the bears fail to defend this level, the coin’s price could fall to $107,557.