The cryptocurrency market has been volatile over the weekend, and the volatility could continue amid strong on-chain activities.

BTC rallied to the $117k mark on Friday after Powell’s speech at Jackson Hole hinted at the possibility of an interest rate cut in September.

However, the market has turned bearish since, with Bitcoin now trading around $112k.

With a strong bearish trend, BTC could slip below $110k over the next few hours or days.

Bitcoin, the leading cryptocurrency by market cap, has lost more than 2% in the last 24 hours and now trades at $112,241.

The bearish performance comes after BTC topped the $117k mark on Friday.

The leading cryptocurrency experienced a flash dump late on Sunday, briefly dropping to the $111k mark.

It bounced back to $114k but failed to build on this momentum and has now dropped below $113k.

The negative performance came as analysts suggested that large holders were shifting their positions from Bitcoin to Ethereum.

Nick Ruck, director at LVRG Research, pointed out that BTC’s dip is a “market recalibration” after rallying since the start of the year.

Data revealed that a single whale sold over 24,000 BTC over the past several days, with some analysts attributing the market’s dump to this activity. 

WhaleWire CEO Jacob King revealed that the wallet address “19D5J…WoZ1C” moved multiple bulk amounts of BTC ranging from 3,000 BTC to 6,000 BTC to different addresses across Aug. 16 to 24.

JUST IN: #Bitcoin flash crash today, which wiped out $310M in long positions, has been traced to a SINGLE Bitcoin whale dumping BTC for ETH. The whale sold 24,000+ BTC, including coins that hadn’t moved in 5+ years, sending 12,000+ #BTC today alone to the Hyperunite trading

King added that most of the money is being moved into Ethereum, with $2 billion worth of Ether bought by the whale, while another $1.3 billion was staked. 

The bearish performance also comes despite the Japanese bitcoin treasury firm, Metaplanet, disclosing on Monday that it bought an additional 103 BTC for $11.7 million.

The firm has now spent $1.95 billion acquiring its overall bitcoin holdings (18,991 BTC) at an average price of $102,712 per bitcoin.

Furthermore, the Philippines Congressman Miguel Luis Villafuerte proposed that the country’s central bank purchase an average of 2,000 BTC annually for five years, with a 20-year lockup period.

The bill also proposes that the apex bank must not sell or trade the bitcoins for any purposes except to retire government debt.

The BTC/USD 4-hour chart is bearish following Bitcoin’s volatile movement over the weekend.

The technical indicators remain bearish as the sell-off continues to affect the Bitcoin market.

The RSI of 47 shows that BTC is currently heading into the oversold region if the bearish trend continues.

The MACD lines have also crossed over into the negative territory, suggesting that sellers are currently in control.

If the bearish trend continues, BTC could drop below Sunday’s swing low of $110,560.

An extended bearish performance could see Bitcoin drop to the $107k support level for the first time since July 7. 

However, the market could bounce back soon, and BTC could reclaim the $114k resistance level in the coming hours or days.

In the event of an extended bullish run, BTC could target the TLQ level at $117,100.

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