Bitcoin Slips Below $79K as Record Whale Profits Test the Rally
- Bitcoin has pulled back below $79,000 after briefly trading above $80,000.
- New whales recorded their largest realized-profit event on record.
- BTC remains above its short-term moving averages despite cooling momentum.
- The market now faces a test of whether fresh demand can absorb whale selling.
Bitcoin slipped back below $79,000 on August 25 after its sharp weekly advance triggered unprecedented profit-taking among recently accumulated large holders, creating the first meaningful test of demand since BTC broke out of its earlier consolidation range.
New Bitcoin Whales Lock In Record Profits
New Bitcoin whales realized more than $1.2 billion in profits across three days, according to CryptoQuant data, the largest profit-realization event recorded for this cohort. Selling peaked on August 20, when realized profits reached approximately $614 million in a single day.
The timing helps explain why the figure matters more than the headline amount alone.
Bitcoin closed August 18 around $64,455 before accelerating to $69,418 on August 20 and $73,098 the following day. By August 24, BTC had closed near $77,678, according to historical market data.
That rapid repricing changed the position of large holders who had entered the market more recently. Coins accumulated near their aggregate cost basis suddenly moved comfortably into profit, giving those investors an opportunity to monetize positions without waiting for another prolonged advance.
The distinction between realized and unrealized profits is critical here. These figures represent coins actually moved at a profit, rather than paper gains created by Bitcoin’s rising market price.
Why Whale Selling Has Not Broken Bitcoin’s Structure Yet
Heavy profit-taking normally adds supply to the market, but price behavior around that distribution provides information about the strength of buyers on the other side.
At the time of writing Bitcoin is trading around $78,749, down from an intraday high of $81,200.
Despite the pullback, BTC remains considerably above the levels seen before last week’s breakout.
That suggests the $1.2 billion profit-realization event has so far been absorbed without reversing the broader weekly move. It does not mean the selling pressure has disappeared. Rather, the relevant question is whether demand remains strong once the forced buying and momentum that accompanied the initial rally begin to fade.
This is where whale cost basis becomes useful.
Recently accumulated large holders had spent months operating close to or below their acquisition levels. Once BTC moved through that zone, the same investors changed from potential underwater sellers into profitable holders with an economic incentive to distribute.
The rally therefore created some of its own supply.
Bitcoin’s $77,900 Area Becomes the First Technical Test
The four-hour chart adds another layer to that demand test.
Bitcoin reached above $80,000 before retreating toward $78,749. Price remains above the 20-period simple moving average at approximately $77,921, making the $77,900 area the closest technical level to watch.
A sustained move below it would weaken the immediate momentum structure and put greater attention on the 50-period SMA around $72,906.
Longer-term averages remain considerably lower, with the 100-period SMA near $68,283 and the 200-period SMA around $66,202. Their positioning below the current price reflects how quickly Bitcoin has appreciated over the past week.
Momentum has already cooled.
The four-hour RSI fell to approximately 62.25, down sharply from the overbought readings recorded during the initial surge. That is not inherently bearish. It indicates that some of the extreme short-term momentum has been removed while BTC remains above its nearest moving-average support.
The combination becomes more meaningful if selling continues. A declining RSI accompanied by a break below the 20-period SMA would provide stronger evidence that buyers are losing control than either signal would individually.
Altcoins Hold Large Weekly Gains Despite the Pullback
Bitcoin’s cooling session has not erased the broader risk-on move across crypto.
Ethereum traded near $2,469, up almost 30% over seven days, while Solana remained around $98.16 after gaining 28.55% during the same period.
XRP had risen 47.79% weekly, Hyperliquid’s HYPE was up 33.65%, and Dogecoin had advanced 28.50%. Zcash remained the standout among the displayed large-cap assets with a 65.03% seven-day increase.
Daily performance was considerably softer, however. Ethereum, XRP, BNB, HYPE, Dogecoin and Chainlink were all lower over 24 hours in the supplied market snapshot, suggesting some profit-taking has spread beyond Bitcoin.
Whale Distribution Now Gives Bitcoin a Cleaner Demand Test
The next useful signal will come from the relationship between realized whale profits and Bitcoin’s ability to remain above its newly established support.
If realized profits retreat from their record levels while BTC continues holding around the upper-$70,000 range, buyers will have absorbed an unusually large distribution event without surrendering most of the breakout.
Continued elevated profit-taking combined with a loss of the $77,900 area would produce a different setup, particularly if price begins moving back toward the lower-$70,000 range.
The composition of selling also deserves attention. New whales generated the record profit event, according to CryptoQuant’s cohort data, rather than the market simply experiencing broad distribution across all long-term holders.
That makes subsequent behavior from the same cohort especially relevant: the market has already given recently accumulated whales an unusually profitable exit window. Whether they continue using it as Bitcoin trades near $79,000 will determine how much additional supply buyers have to absorb.
