Bitcoin Hits $122,000 but Faces Selling Pressure

This week Bitcoin hit $122,000 after soaring more than 300% from its lowest points. However, massive whale activity has triggered selling pressure, leading to a cautious market atmosphere. On the daily chart, Bitcoin made a strong volume-driven breakout above the resistance zone between $112,000 and $114,000.

Every major moving average, including the 50-day EMA at $107,800 and the 200-day EMA at $97,000, was significantly above the price. There should have been substantial bullish momentum following this textbook breakout, but it is now facing fundamental challenges. Notably, the whale behind the infamous 80,000 BTC wallet has started transferring funds to Galaxy Digital, an OTC desk.

A total of 16,843 Bitcoin, valued at around $2 billion, is being prepared for sale. The act of moving coins alone caused a drastic reaction: spot exchanges saw a surge in defensive selling, and Bitcoin’s price plummeted by over $6,000 per coin. This illustrates the volatility dynamics of Bitcoin: liquidity swiftly evaporates when large holders choose to cash out.

Panic-driven exits in anticipation of this whale distribution contributed to a 300% increase in daily trading volume during this move. Technically, Bitcoin is still above short-term support around $111,000. However, buyers are withdrawing in real-time, as shown by the price reversal near $122,000. Should Galaxy Digital proceed with the full sales tranche, another dip could test the $107,000-$110,000 range. While the long-term upward trend remains intact, rapid reversals are possible, and a single large seller can disrupt weeks of accumulation.

As the market processes this $2 billion in liquidation, traders should watch for more whale movements and be prepared for increased volatility.

Ethereum Faces Challenges

Ethereum’s breakout above $3,000 initially seemed promising, but it has since dropped back below this crucial psychological barrier, now trading around $2,980. Bulls have failed to maintain momentum above $3,000, reflecting an immediate selling pressure after the initial rise.

On the daily chart, after a significant push from the $2,600-$2,800 range, ETH exhibited a few high-volume candles before confronting immediate selling pressure. The failure to sustain its price and the form of a rejection wick indicate that traders are eager to lock in profits, and their buying impulse has waned. The broader market context exacerbates this situation. When Ethereum made its breakout attempt, Bitcoin’s subsequent pullback of several thousand dollars negatively impacted ETH’s sentiment. Each intraday dip has been amplified by this correlation and overbought conditions (the RSI is nearing 70).

Despite still being above all significant moving averages, with the 200-day EMA at $2,474 and the 50-day EMA at $2,587 well below the current price, the inability to hold $3,000 serves as a warning sign. Momentum may revert to the $2,800 consolidation zone if buyers do not regroup quickly. To sustain the uptrend, Ethereum needs to decisively close above $3,000 with high volume, which it couldn’t achieve during its first attempt.

Shiba Inu Fails to Hold Gains

In one of the most significant fakeouts in recent trading history, Shiba Inu has left traders questioning its price action’s legitimacy. After what appeared to be a promising breakout attempt over the last week, SHIB climbed towards the crucial resistance zone near the 200-day EMA.

However, this rally stalled rather than confirmed a trend reversal, raising red flags technically. The failure to close above the 200 EMA has acted as a ceiling on rallies since January, resetting bullish sentiment.

The price briefly broke through the $0.000013 zone on this latest attempt but reversed swiftly on rising volume, indicating a distribution phase rather than accumulation. For weeks, SHIB consolidated within a narrow range between $0.000011 and $0.0000125. The unexpected spike drew in sidelined traders, anticipating a larger breakout. Now, it seems to resemble a liquidity grab aimed at extracting exit liquidity for larger holders, as no follow-through buying followed the rise.

As the price hovers near previous support levels, the RSI has retracted from overbought readings. A deeper retreat toward $0.000011—or worse—appears likely if SHIB cannot maintain levels above $0.0000122 in the coming days. Without a confirmed breakout and hold above the 200 EMA, market sentiment suggests this was likely a planned fakeout.

Only an unexpected increase in actual buying volume could lead to a significant reversal for Shiba Inu.