Bitcoin Price Analysis: BTC Retreats To $122,000 As Rally Cools

Bitcoin (BTC) retreated from record highs as its latest rally took a breather. The flagship cryptocurrency traded around $125,000 on Tuesday but lost momentum and fell to a low of $120,741 before moving to its current level. BTC is down almost 2%, trading around $122,740. 

However, analysts point out that overall sentiment remains bullish. The Crypto Fear and Greed Index remains in “Greed” territory despite falling ten points. Traders believe the downturn is just a technical shakeout. 

Strategy’s Bitcoin Stash Closes In On Big Tech 

Strategy’s $78 billion Bitcoin treasury is closing in on the massive cash positions of tech giants like Microsoft, Amazon, and Google. Microsoft shareholders had recently rejected a proposal to add Bitcoin to its balance sheet. Strategy posted on X that the value of its Bitcoin (BTC) stash briefly crossed $80 billion when BTC crossed the $126,000 mark. BTC’s surge boosted the value of Strategy’s holdings closer to Amazon, Google, and Microsoft, which each hold between $90 billion and $97 billion in cash or cash equivalents. 

Strategy’s routine BTC purchases have pushed the value of its treasury past the likes of Nvidia, Apple, and Meta. Berkshire Hathaway holds the largest cash pile of any company at $344 billion, while Tesla is the only other firm that holds BTC to make the list of the top ten largest corporate treasuries. 

Bitcoin Whale Returns With $360M Transfer 

The Bitcoin whale who rotated $5 billion of their $11 billion BTC stash to ETH has returned to the market, making another $360 million transfer. The whale transferred $360 million worth of Bitcoin into DeFi protocol Hyperunit’s hot wallet on Tuesday. This is the whale’s first transfer in two months. Analysts believe the latest transfer could be another rotation into ETH, based on previous patterns. 

The Bitcoin whale stunned the market two months ago, rotating $5 billion worth of BTC into ETH. The transfer saw the trader briefly surpass Sharplink as the second-largest holder of ETH. The Bitcoin whale began rotating capital into ETH on August 21, selling $2.59 billion worth of BTC for a $2.2 billion spot Ether and a $577 million Ether perpetual long position. However, despite the whale activity, Bitcoin continues to attract investors who want to use it as a hedge against rising federal debt and the ongoing government shutdown. Ryan Lee, chief analyst at Bitget, stated, 

“In this environment, capital is gravitating toward scarce, non-sovereign assets that preserve value over time.”

Bitcoin Holders Move $3.9 Billion in Dormant BTC 

Bitcoin holders who have been dormant for three to five years have moved $3.9 billion in Bitcoin, their largest cumulative transfer in 2025. The cohort of investors transferred 32,300 Bitcoin worth $3.93 billion to exchanges, according to data from CryptoQuant. According to analysts, large-scale selling by dormant Bitcoin whales was one of the primary reasons for Bitcoin’s price action in August. 

“BTC supply is concentrated around OG whales who peaked their holdings in 2011, who bought Bitcoin below $10. This differential in cost basis, the supply they hold, and their rate of selling has profound impacts on how much new capital needs to come in to lift the price.”

However, according to Matrixport, Bitcoin is poised to outperform other assets despite concerns about whale selling and widespread calls for altcoin season. 

“Over the past two months, Bitcoin dominance temporarily declined as ETH and select alts outperformed, but that trend is now reversing – signaling that Bitcoin is once again reclaiming leadership in this cycle.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) crossed $125,000 on Sunday, reaching an all-time high of $125,559 before settling at $123,520. Bullish sentiment persisted on Monday as the price broke above $126,000 and reached a new all-time high of $126,296 before settling at $124,720. Bullish momentum waned on Tuesday as the BTC fell nearly 3% to $121,393. The price is up over 1% during the ongoing session, trading around $123,100. 

Bitcoin and crypto analyst Mark Moss believes the flagship cryptocurrency is yet to reach its peak range. Bitcoin is trading close to its all-time highs. However, its MVRV score remains below levels historically associated with market tops. This means the rally may have some more room to grow. Bitcoin’s MVRV score measures how far Bitcoin’s market value deviates from its realized value.

“Bitcoin is breaking out to new ATHs, and yet it's not looking anywhere near cycle peaks while external fundamentals are looking hot. Unlike 2021, the Fed is not tightening; they are loosening, ETFs and BTCTC's are creating the greatest demand shock, and the world has woken up to the debasement trade.”

Coinglass’ bull market peak signals are also showing no signs of overheating, with none of the indicators flashing a top signal. Popular YouTuber Jesus Martinez stated, 

“Bitcoin still has a lot of room for growth. The dollar is crashing, the world’s monetary system is crumbling, and considering markets have nowhere near the retail interest seen in 2021, we are still in a growth phase.”

Meanwhile, analyst Jonathan Carter believes Bitcoin’s new all-time high is just beginning, setting a long-term bullish target between $200,000 and $250,000. 

“Bitcoin’s new all-time high is just the beginning. A successful breakout could see the BTC/USD pair surge toward targets at $135,000, $145,000, and $160,000. The long-term bullish target for this cycle is expected to reach between $200,000 and $250,000.”

Meanwhile, Global crypto exchange-traded products (ETPs) registered a staggering $5.67 billion in net inflows, their largest weekly haul, indicating a return of investor interest, fueled by a conviction about the “debasement trade” as geopolitical tensions escalate. Bitwise, in its weekly market report, stated that the current rally indicates that weakening confidence in fiat currencies and rising macroeconomic uncertainty are driving investors towards assets like BTC and gold. Analysts highlighted that the US Dollar Index (DXY) has fallen 10% year-to-date, while gold rose 50% and BTC 27%. Investors have started viewing BTC as a digital hedge that offers asymmetric upside in the race against currency debasement. 

BTC started the previous weekend with a marginal drop on Saturday before rising over 2% on Sunday and settling at $112,197. Buyers retained control on Monday as the price rose almost 2% to cross $114,000 and settle at $114,365. Despite the positive sentiment, BTC fell to a low of $112,695 on Tuesday. However, it recovered from this level to settle at $114,067, ultimately registering a marginal decline. Bullish sentiment returned on Wednesday as BTC rallied, rising over 4% to cross $118,000 and settle at $118,659. Buyers retained control on Thursday as the price rose 1.65% to reclaim $120,000 and settle at $120,621.

Source: TradingView

Bullish sentiment persisted on Friday despite volatility and selling pressure. As a result, BTC reached an intraday high of $123,996 before settling at $122,318. Buyers retained control on Saturday as the price registered a marginal increase and settled at $122,458. Bullish sentiment intensified on Saturday as BTC rallied, surging past $125,000 to a new all-time high of $125,559. However, it could not stay at this level and ultimately settled at $123,520. BTC surged to a new all-time high on Monday, crossing $126,000 to reach $126,296 before settling at $124,720. Despite strong bullish momentum, BTC retreated on Tuesday, falling nearly 3% and settling at $121,393. BTC is up over 1% during the ongoing session, trading around $122,550.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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