Bitcoin Correction Risks Deepen With $105,000 As Critical Support

Following another unsuccessful attempt to create a new all-time high (ATH), Bitcoin (BTC) dropped to a weekly low of $110,820 on the Binance exchange yesterday. The world’s largest cryptocurrency by market cap has now entered a clear pullback phase, with $105,000 emerging as the critical support level that traders are closely watching.

Bitcoin Falls To $110,000 Amid Market Pullback

According to a CryptoQuant Quicktake post by contributor BorisD, Bitcoin’s current distribution phase could extend for several more days. Wallet accumulation and distribution patterns highlight stronger sell-offs among BTC whales, raising questions about short-term price stability.

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For context, Bitcoin whales are individuals or entities that hold very large amounts of BTC, typically thousands of coins, giving them outsized influence on market trends. Their buying or selling activity can significantly move prices, making whale behavior a closely watched indicator for traders and analysts.

Interestingly, smaller wallet cohorts are showing different behavior. Wallets holding 0–0.1 BTC recently switched back to accumulation mode as the broader market declined. These smaller holders typically follow the price rather than set the trend. 

Wallets holding 0.1–1 BTC began accumulating even at ATH levels. This trend suggests retail investors remain confident in Bitcoin’s long-term trajectory.

On the other hand, wallets with 1–10 BTC halted their selling around the $107,000 level and returned to accumulation. This trend hints that mid-sized holders see current price levels as attractive buying opportunities, despite overall market weakness.

BTC Whales Continue To Sell

Larger holders are displaying more cautious behavior. Wallets with 10–100 BTC stopped accumulating at $118,000 and have since moved into distribution. 

BorisD pointed out that wallets with 100–1,000 BTC are the most important group to watch. While generally in accumulation mode, this cohort has shown a balance between buying and selling. The analyst added:

They have shown balance between accumulation and distribution since $105,000, reflecting indecision. This level acts as a critical support-turning zone.

Meanwhile, wallets with 1,000–10,000 BTC remain in consistent sell-off mode following the ATH of $124,474 reached on August 13. The largest wallets – holding more than 10,000 BTC – also began selling at those highs and continue to distribute. However, the pace of their selling has slowed as the price pulls back, indicating weakening distribution pressure.

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The analyst emphasized that although distribution remains the dominant trend, its intensity is waning. The $105,000 support zone now stands out as the most crucial threshold. A decisive break below this level could shake market confidence and trigger widespread fear among investors.

Fellow CryptoQuant contributor, Julio Moreno, recently stated that the CryptoQuant Bull Score Index moved into neutral territory. However, it must trade over $112,000 to avoid a sharper price correction.

Another prominent crypto analyst, Tony “The Bull” Severino said that BTC’s path to $183,000 remains intact. At press time, BTC trades at $111,349, down 2.7% over the past 24 hours.

Featured image from Unsplash, charts from CryptoQuant and TradingView.com