Bitcoin is facing renewed volatility after weeks of tight consolidation, with price action showing signs of weakening bullish momentum. Following an extended period of sideways movement near all-time highs, the market has shifted into a more uncertain phase, marked by increased selling pressure and fading volume. Some analysts believe this could be the early setup for a deeper correction, especially if critical support zones fail to hold. Adding to the cautious sentiment, Arkham Intelligence has revealed that the Royal Government of Bhutan recently moved $59 million worth of BTC to a new address: bc1q8ag. This address had previously sent a test transaction to a known Binance deposit address just one day before receiving the full amount, sparking speculation across the market. Although Bhutan still holds over $1.23 billion in Bitcoin, this sudden move suggests potential selling activity by a major holder, which could amplify short-term bearish pressure if confirmed. With whale behavior shifting and the broader crypto market losing steam, Bitcoin investors are watching closely. Any negative catalysts—especially institutional sales—could trigger a more pronounced sell-off, forcing a reevaluation of the current bullish cycle. Is Bhutan Selling Bitcoin? Market Braces for Possible Shift According to Arkham Intelligence, the Royal Government of Bhutan still holds over $1.23 billion worth of Bitcoin, making it one of the largest sovereign holders of BTC. However, the recent on-chain movement of $59 million to an address that tested a Binance deposit wallet has sparked speculation that Bhutan may be preparing to offload part of its holdings. While this does not confirm a sell-off, it has raised concerns at a time when the broader market is showing signs of fatigue. Bitcoin is currently trading in a fragile range, with analysts warning of a potential breakdown below the $110,000 level. Selling pressure has increased in recent days, and the market no longer shows the explosive bullish momentum that characterized the past few months. ETF flows have also turned negative, a clear signal that institutional demand is cooling off for now. Despite the bearish signals, some market participants remain cautiously optimistic. There’s hope that the current structure will evolve into a sideways consolidation rather than a steep correction. If bulls can hold the $110K–$112K support zone, the market could avoid cascading liquidations and set up for another leg higher. If whale selling accelerates—especially from major holders like Bhutan—this could reinforce the bearish narrative and push prices deeper into correction territory. Bitcoin Struggles Near Key Resistance After Breakdown from Range Bitcoin is currently trading near $115,035, showing signs of weakness after breaking below its previous consolidation range between $117,500 and $122,000. The 12-hour chart highlights a bearish structure, with BTC failing to reclaim the 50-period moving average (blue), which is now acting as dynamic resistance around $115,724. Momentum appears to be fading, and volume has declined following the sell-off earlier this month. Notably, the 100-period moving average (green) at $112,693 has provided short-term support, but the lack of bullish conviction raises concerns. A rejection at the 50MA could push Bitcoin back toward the $112K–$110K region, where the 200-period moving average (red) at $108,381 could act as a last-resort support before more aggressive selling pressure emerges. The consolidation that once held Bitcoin in a tight range above $117K now acts as a resistance barrier. If BTC fails to climb back above that level soon, the market could transition into a deeper correction phase. Featured image from Dall-E, chart from TradingView
