Whales are aggressively buying the dip in Bitcoin: $8 billion withdrawn in a week, can BTC break the $112,500 resistance?

After Bitcoin's price recently fell below 110,000 USD, it quickly rebounded above 111,800 USD, thanks to the market entering its strongest accumulation period in eight months. Data shows that nearly 8 billion USD worth of 70,956 Bitcoins were withdrawn from exchanges in large amounts over the past week, indicating that long-term investors and institutions are buying the dip at low prices, significantly reducing short-term selling pressure. However, despite optimistic accumulation signals, the Relative Strength Index (RSI) remains below the neutral line of 50.0, suggesting that short positions in the market have not completely dissipated. Whether Bitcoin can break through the key resistance level of 112,500 USD will determine if it can regain upward momentum in the short term.

Exchange data reveals: The strongest accumulation wave in eight months.

The biggest highlight of the current Bitcoin market is the active changes in on-chain activity, especially the large-scale outflow of funds from exchanges.

(Source: TradingView)

· Huge outflows confirm buying the dip: Data on net position changes at exchanges show that in the past week, a net withdrawal of 70,956 Bitcoins (worth nearly 8 billion USD) has occurred. This large-scale capital outflow marks the strongest accumulation phase in eight months.

· Long-term confidence solid: A sharp decline in exchange inventory is often seen as a strong signal of the market's optimistic attitude towards a price rebound. It indicates that long-term holders and institutional investors are actively taking advantage of Bitcoin's temporary weakness to buy the dip, laying the foundation for potential future increases.

· Selling pressure has significantly eased: The outflow of funds from the exchange not only reflects buyers' confidence but also indicates a reduction in potential selling pressure in the market. This easing of selling pressure helps stabilize the market in the short term and provides favorable conditions for subsequent price increases.

Technical Indicator Warning: The tug-of-war between bulls and bears continues, and the speed of recovery may slow down.

Despite strong accumulation signals, macro momentum indicators still remind investors that market challenges remain, and the pace of Bitcoin's recovery may be slower than expected.

· RSI is still below 50.0: The relative strength index of Bitcoin (RSI) is currently still below the neutral line of 50.0. This indicates that the short positions momentum has not fully ended, and the short-term market sentiment is still under broader market pressure.

· Tug of war in direction: The current market state shows a clear tug of war between bulls and bears: on one hand, there is a strong outflow from exchanges (long-term belief), while on the other hand, the residual short positions indicated by the RSI (short-term sentiment). Until stronger bullish signals appear, the price direction of Bitcoin may continue to be caught in this game, and the pace of recovery may not be immediate.

Price Path Analysis: $112,500 Becomes a Key Short-term Resistance

With the support of institutional accumulation demand, Bitcoin has quickly rebounded from below $110,000, but whether it can effectively break through the key resistance level is crucial in determining its short-term fate.

· Key to the upward breakout: As of the time of writing, the trading price of Bitcoin is approximately 111,842 USD, slightly below the key resistance level of 112,500 USD. Successfully breaking through and holding above 112,500 USD will be the primary condition for restoring upward momentum.

· Bullish Scenario: If Bitcoin can break through 112,500 USD, it is likely to re-establish 115,000 USD as a support level. This will open the way for the price to reach 120,000 USD, driven by sustained accumulation demand and reduced sell pressure from the exchange.

· Bearish risks: Conversely, if the price fails to overcome the resistance at $112,500, Bitcoin will face downward risks again. The price could potentially drop back to $110,000 and even test the support at $108,000. This would overturn the short-term bullish outlook and reignite market doubts about Bitcoin's recent rebound.

Conclusion

Bitcoin's current market performance is full of contradictions: the surge in on-chain accumulation depicts the strong faith and huge buy the dip enthusiasm of long-term investors, building momentum for future rises; while the lagging technical indicators remind us that short positions still carry risks in the short term. $112,500 is the core battleground for the recent tug-of-war between bulls and bears, and its outcome will directly affect whether Bitcoin can break free from the September turbulence and kick off the market-anticipated "Uptober" rally.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.