Bitcoin price slipped to $112,828 on Aug. 22, down 1.4% on the day as retail demand cooled while whales quietly accumulated.
- Bitcoin trades at $112,828, 9.3% below its Aug. 14 all-time high of $124,128.
- Retail demand is fading, but whales bought 16,000 BTC in the past week.
- Technicals show $112K as key support; failure could push prices toward $105K.
Bitcoin (BTC) is now 9.3% below its peak of $124,128 reached on Aug. 14 and down 6% for the month. With daily spot volume falling 23.9% to $31.58 billion, trading activity has slowed significantly, indicating cooling momentum.
Alongside spot weakness, derivatives activity is declining, as per Coinglass market data. While open interest increased by 0.3% to $81.43 billion, futures volume fell 16.7% to $66.17 billion. A decline in volume and an increase in open interest indicate that traders are being cautious and holding onto their positions rather than closing them.
Retail demand fades while Bitcoin whales step in
According to an Aug. 21 post on X by CryptoQuant analyst Maartunn, retail demand fell 5.7% over the past week. He described smaller buyers as “tourists” who are quick to leave when prices turn volatile.
Retail has already left. 🤔
🔹️Retail Demand Change sits at -5.7%.
They’re the tourists of the crypto market here for the hype, gone when it fades. pic.twitter.com/qiu0aXJpxB
— Maartunn (@JA_Maartun) August 21, 2025
Maartunn also noted that Bitcoin has now retested the $112,000 zone, its former record high, twice in a short span. He cautioned that repeated retests often weaken support and can foreshadow deeper losses.
Yet large holders appear to be taking the opposite view. CryptoQuant contributor Caueconomy, in an Aug. 22 analysis, reported that whales purchased over 16,000 BTC in the past seven days. Similar accumulation preceded a brief rebound earlier this month, suggesting that some investors may view the current levels as a buying opportunity.
On-chain signals point to early BTC market reset
Short-term holders who purchased between $113,000 and $120,000 are currently sitting at slight losses, according to data shared by Glassnode on Aug. 21. At the moment, their Spent Output Profit Ratio falls between 0.96 and 1.01.
The Anatomy of a Local Bottom
1- When the market enters a post-ATH contraction phase, short-term price action is often shaped by how top-buyers react to growing unrealized losses.
Right now, a dense cluster of supply, accumulated between $113k and $120k since early July,… pic.twitter.com/qn7CMnBJcH
— glassnode (@glassnode) August 21, 2025
In the past, local bottoms tend to form when this ratio dips closer to 0.9, indicating deeper capitulation. Current readings imply that the market is in the early stages of a possible reset, even though they do not confirm a bottom.
Bitcoin price technical analysis
Bitcoin is testing the lower edge of its Bollinger Bands, often a sign of oversold conditions but also a warning of heightened volatility. At 42, the Relative Strength Index is neutral but on the decline. Momentum indicators are bearish, with the MACD showing a negative crossover and short-term moving averages (10–50 day) indicating continuous pressure.
Longer-term moving averages (100 and 200 day) continue to be supportive, highlighting Bitcoin’s overall upward trend. Oscillators like the Williams percentage rate and stochastic RSI suggest that there might be a chance for a short recovery.
If whales continue to accumulate and the $112,000 support holds, Bitcoin might try to recover towards $118,000. If this level is not held, it may reach the next crucial support zone, which is in the $105,000–$108,000 range.