Key takeaways:
-
Bitcoin risks testing $100,000 after breaking a key support level of a bear flag.
-
The so-called “insider” whale moved 5,252 BTC ($588 million) to exchanges and opened a new $234 million short.
Bitcoin (BTC) is showing signs of technical weakness after breaking below a key short-term support level, coinciding with large BTC transfers from a so-called “insider” entity to major exchanges.
Bear flag setup targets BTC prices below $100,000
The BTC/USDT 4-hour chart shows Bitcoin slipping under the lower trendline of a bear flag, a continuation pattern that often signals further downside following a brief consolidation.
The projected target from the pattern breakdown points to around $98,000, aligning with the mid-June swing low.
BTC also trades below its 20- (green) and 50-4H (red) exponential moving averages (EMAs), aligning with the $109,000-110,000 resistance area. Failure to reclaim this area as support could further validate the bearish setup.
Mysterious whale bets more on Bitcoin dropping
Bitcoin’s bear flag setup emerges against the backdrop of renewed activity by a notorious whale accused of manipulating prices.
It is the same entity that pocketed over $200 million shorting Bitcoin during the China tariff crash two weeks ago. This so-called “insider” whale and “$10B Hyperunit Whale” has resurfaced with multiple massive bearish bets.
First, it has transferred 5,252 BTC, worth about $588 million, to major exchanges including Coinbase, Binance, and Kraken, according to Arkham data.
Such large inflows often indicate the intention to sell or hedge positions.
Meanwhile, the whale’s new $234 million short position on Hyperliquid, opened near $111,190 per BTC, is already sitting on about $6.7 million in unrealized profit, suggesting confidence that the downtrend has further to go.
Analyst CryptoNobler called the whale move “pure manipulation,” suggesting that it may intentionally dump his Bitcoin holdings in hopes that the prices drop toward its short position targets.
The true identity of the whale remains unconfirmed, but blockchain sleuths have linked the wallet to Garrett Jin, former CEO of the defunct exchange BitForex.
In now-deleted posts, Jin acknowledged the connection after clashing with Binance CEO CZ on X, later claiming the fund belongs to clients and not to him personally.
Related: 3 reasons why a Bitcoin rally to $125K could be delayed
Crypto analyst Quinten François has voiced skepticism over the alleged link between the Hyperliquid whale and BitForex’s former CEO, suggesting the connection might be “too neat to be credible” given the circumstantial nature of the evidence.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
