Leo Zhao at MEXC calls the dip a tactical entry for institutions. He sees a plausible near-term move to $130K.
Bitcoin fell below $110,000 this week after a sharp unwind of leveraged positions and a large dormant-wallet sale that strained liquidity.
MEXC Investment Director Leo Zhao says institutional accumulation during the dip keeps a near-term run to $130,000 plausible by year-end if ETF flows resume.
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Immediate Triggers: Whale Sale, Leverage And Thin Liquidity
Bitcoin briefly crossed $117,000 after Federal Reserve chair comments at Jackson Hole, but buyers failed to hold gains, exposing thin order books.
A dormant wallet offloaded about 24,000 BTC into the market, which coincided with more than $900M in leveraged liquidations across exchanges, forcing rapid price moves and a weekend flash crash.
Short-covering amplified declines as stop orders hit thin bids, and attempts to recover were rejected near $113,000, signaling that momentum had collapsed. Traders reported heavy profit-taking from long-term holders, making the market vulnerable to sharp reversals on selling.
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ETF Flows, Capital Rotation And On-Chain Signals
Spot Bitcoin ETFs logged more than $1 billion in outflows in the latest week, reversing steady inflows and removing a key buyer class. Investors reallocated to Ethereum products, which attracted multi-billion dollars of inflows in August as ETH outperformed BTC.
On-chain metrics show realized profits falling back toward breakeven, which explains why intraday recoveries lacked follow-through.
Traders prioritized hedging over fresh longs, and short-term momentum metrics such as RSI and MACD signaled weakening strength. The net effect reduced immediate demand for spot BTC and increased downside sensitivity.
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Institutional Accumulation And The Path To $130K
Institutions and sovereign buyers continued to add Bitcoin during the dip, using lower prices to scale exposure while retail and leveraged traders de-risked. That steady accumulation has kept net institutional demand above new supply, which preserves a structural floor.
Based on near-term Bitcoin price predictions, BTC may consolidate between $110,000 and $120,000 or test $100,000 if momentum fades. If ETF inflows restart and macro risks ease, a move toward $130,000 before year-end remains credible still.
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Conclusion
Sustained ETF inflows, calmer macro conditions, and steady institutional accumulation could reestablish upward momentum, making Zhao’s near-term $130,000 target a realistic scenario before the year closes.
Read our full Bitcoin price prediction here
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