Bitcoin price prediction: BTC faces short-term weakness as whales counter ETF inflows

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Sholanke Dele

08.10.2025

Bitcoin price prediction: BTC faces short-term weakness as whales counter ETF inflows — Bitcoin consolidates near $122,000

Bitcoin price is consolidating near $122,000 in Wednesday’s European session after sharp volatility earlier in the week that saw BTC retreat from the all-time high at $126,000.

The current intraday consolidation follows Tuesday’s 3% decline to a four-day low at $120,650, which erased the previous four days of gains. The decline reflects profit-taking and growing signs that long-term holders are starting to distribute holdings.

- Bitcoin consolidates near $122,000 as profit-taking rises and whale distribution pressures price.

- ETF inflows exceed $1.19 billion this week, reinforcing institutional demand behind Bitcoin rally.

- Technical setup shows 20-EMA death cross as traders eye $120,000 support rebound.

On-chain data confirms this behavioural shift among large Bitcoin investors. Average dormancy, a measure that tracks the movement of long-held coins, climbed to its highest level in a month during early October. Rising dormancy often indicates that older wallets are becoming active, suggesting that long-term holders are selling or moving their coins. This pattern typically precedes short-term corrections as selling pressure builds on the market.

Bitcoin price dynamic ( Sept - Oct 2025). Source: Cryptoquant

However, Bitcoin’s broader structure remains supported by institutional flows. Bitcoin ETFs recorded $1.19 billion in inflows earlier this week, marking the largest single-day inflow of 2025. Total October inflows have now reached $2.29 billion, pushing the combined assets of U.S. listed Bitcoin ETFs above $61.25 billion. This surge in institutional participation highlights ongoing demand from fund managers and long-term investors, tempering the impact of short-term selling by whales.

Bitcoin 20-EMA crossover below 50-EMA confirms near-term bearish setup

Technically, Bitcoin pullback on Tuesday has led to a short-term shift in market structure. On the one-hour chart, the 20 EMA has crossed below both the 50 and 100 EMAs, forming a death cross that signals potential for near-term weakness. The recent consolidation zone between $120,650 and $122,200 has seen rising traded volume, showing that traders are positioning for a breakout expansion. Given the current setup and on-chain data, the breakout could initially skew to the downside before buyers re-enter at lower levels.

Key support lies at the $120,000 psychological mark, which aligns with previous consolidation from early October. A rebound from this area could attract dip buyers and stabilise the price, while a breakdown below it may extend the correction toward $118,000. On the upside, resistance sits near $122,200, and reclaiming this level would be the first sign that momentum is shifting back to the bulls.

Overall, Bitcoin’s pullback reflects a period of recalibration rather than structural weakness. ETF inflows demonstrate strong underlying demand even as short-term technicals soften. The next few sessions will determine whether buyers can defend $120,000 and restore upward momentum or whether whale activity will push prices into a deeper correction phase.

Recently, we discussed Bitcoin easing to $124,000 after setting a new all-time high. Trading volume declined, suggesting mild profit-taking even as investor confidence stayed firm.

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