Bitcoin has experienced a modest pullback in its price, slipping to $115,846 after reaching recent highs above $120,000 in the past week.
The price of the crypto asset is currently consolidating around the $118,000 resistance zone. Data from Kraken revealed that there is a bearish trend line forming with resistance at $118,000 on the hourly chart.
A rising Whale-to-Exchange ratio and elevated long-term holder spent output profit ratio, indicate increasing selling pressure, often a precursor to significant market pullbacks. The Whale-to-Exchange Ratio, which reflects whale activity on centralized exchanges, has risen significantly, suggesting large holders are preparing to sell.
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This metric’s increase, coupled with whale wallet inflows surging by $17 billion (from $28 billion to $45 billion) between July 14 and July 18, indicates profit-taking at recent all-time highs. Meanwhile, the current bearish scenario is consistent with past trends following surges in SOPR and whale activity.
Adding weight to the cautionary outlook, data from CryptoQuant reveals a significant spike in whale activity. The Whale to Exchange Flow monthly average has surged by nearly $17 billion in just four days. This kind of jump historically coincides with either profit realization or increased volatility, as large holders adjust their positions.
Although bulls are still in control of the trend, this level of whale inflow to exchanges may introduce short-term selling pressure, especially as Bitcoin hovers near its all-time high. The coming days could prove pivotal, as market participants assess whether this activity marks the beginning of a larger distribution phase or simply a healthy rotation within a bullish uptrend.
The latest market movement shows that long term holders are beginning to sell at a profit, but the indicator has yet to reach historically critical levels associated with market tops. This implies that long-term investors are realizing gains, but not to an extent that would suggest market euphoria or widespread distribution.
The gradual increase in profit-taking could indicate that the market is maturing while maintaining upward potential. Analysts predict that if Bitcoin fails to rise above the $118k resistance zone, it could start another decline. Immediate support is near the $116,200 level and the first major support is near the $115,500 level. Any more losses might send the price toward the $112,500 support in the near term.
Despite this minor dip, market analysts remain optimistic about Bitcoin’s long-term trajectory. Key indicators, including strong whale accumulation and long-term holder confidence, suggest that the current decline is part of a healthy correction within a broader bullish trend.
While the current downturn may signal a cooling of investor enthusiasm, on-chain indicators suggest the market may still have room to expand before reaching an exhaustion point. Notably, activity among long-term holders and derivatives traders reveals continued interest and potential for price volatility.
According to a recent CryptoQuant QuickTake post by contributor ShayanMarkets, BTC reserves on centralized exchanges have risen to their highest level since June 25. This surge in exchange-held Bitcoin may signal increasing profit-taking activity among investors.
On-chain data also shows that long-term holders are distributing their BTC, while short-term holders are increasingly accumulating. This kind of rotation is often associated with late-stage rally behavior and potential exhaustion. Some expect Bitcoin to break higher toward uncharted territory, while others warn of an incoming correction, citing historical patterns and profit-taking behaviors.
A decisive move above $122,077 with strong volume would likely confirm the next bullish leg, possibly targeting the $130K zone. Traders and investors should closely monitor market trends, alongside traditional technical analysis to navigate potential volatility and adjust strategies accordingly. While short-term risks persist, the long-term bullish trend remains intact, driven by Bitcoin’s underlying fundamentals and market dynamics.