Bitcoin at risk of Labor Day crash to $105K as sellers capitalize on OG BTC whale threat
Bitcoin is trading in rocky waters as the price struggles to hold above $108,000, with little sign of an immediate recovery. Traders are exercising caution ahead of the U.S. Labor Day holiday when Wall Street will be closed, while the market faces the added overhang of a large, long-dormant Bitcoin whale that may be unloading another sizable tranche of BTC into the open market.
On-chain trackers have flagged notable transfers from whale-sized wallets and subsequent conversions of proceeds into Ether. At the same time, inflows to spot Bitcoin ETFs have cooled and weakness at the end of the week in the Dow, S&P 500 and Nasdaq has weighed on investor sentiment. Political headlines have also added uncertainty, contributing to the cautious mood.
Some market participants remain hopeful that the Federal Reserve will begin cutting interest rates later in September or in October, but those expectations have not been enough to lift short-term sentiment or trigger a sustainable bullish reversal.
Technically, Bitcoin’s intraday action is being driven largely by activity in perpetual futures markets. Cumulative volume flow shows selling from mid-size to very large Binance accounts far outpacing buying on both spot and futures venues. That continued selling pressure in futures has suppressed price breakouts even as retail-sized spot buyers step in to purchase each new dip.
Order-book metrics show buyers taking bites at lower levels: bids increased in the $112,000–$111,000 zone on Aug. 19–22 and again as Bitcoin fell toward about $107,200 later in the week. A 30-day liquidation heatmap highlights downside liquidity concentrated around $104,000, while shorter time-frame order-book reads show visible bids at $105,000, $102,600 and $100,000, with additional bids in the $99,000–$92,000 range when depth is expanded.
Although retail buyers are actively buying dips, overall order-book liquidity and prevailing futures selling favor downside moves. With U.S. markets and spot BTC ETFs closed for Labor Day, and the specter of further selling from an OG whale, downside pressure could intensify in the near term and push BTC toward $105,000 or below.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk; readers should conduct their own research before making a decision.
