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Key Takeaways:
- BTC’s $110K retest is less explosive but more structurally resilient, driven by steady ETF inflows and smart money activity.
- Glassnode data indicates a possible shakeout strategy, with whales selling into strength and reloading after dips.
- Market sentiment remains cool, raising the possibility of a final liquidity flush before a true breakout.
Bitcoin [BTC] is once again knocking on the doors of the $110,000 level—a resistance it last touched exactly one month ago. But unlike the aggressive rally that got it there in June, the July climb has been more deliberate, fueled by steady accumulation from $98,000. The market now stands at a critical crossroads: Is FOMO about to push BTC higher, or is this a calculated trap by smart money?
Sentiment and Profit-Taking Clash at $110K
On July 4, on-chain data from Glassnode revealed that 80,000 BTC—worth over $8.6 billion—were moved by addresses that had remained dormant for five years. Interestingly, this occurred alongside realized profits hitting a yearly high of $9.2 billion. Despite this massive profit-taking event, BTC dipped just 1.41%—a sign of exceptional demand absorption.
Last Friday, over 80K $BTC last active 5+ years ago moved on-chain – a rare event. It marks the third-largest single-day revival of old BTC supply in history. The move occurred at a price of ~$108K, making the #BTC worth over $8.6B at the time. pic.twitter.com/Gr8MGc4Wqu
— glassnode (@glassnode) July 8, 2025
That demand appears to be fueled largely by institutional appetite. Over $1.3 billion has flowed into Bitcoin ETFs so far this month, helping offset the sell pressure. However, sentiment remains surprisingly tempered. The Fear & Greed Index barely broke 64 during the last rally, a far cry from the euphoric peaks seen during past market tops.
Smart Money Signals: Accumulation or Exit?
While retail eyes another breakout, smart money appears to be playing a more nuanced game. The recent 80k BTC transfer has split analysts. Some interpret it as a classic “shakeout” move—triggering volatility around resistance to scare out weak hands and buy back lower.
Whales trying to scare the market to accumulate more
— Alan Act (@69Alanact) July 8, 2025
Supporting this theory, whale address counts fell by 26 in the ten days leading to BTC’s rejection at $110K last month. When prices plunged to $98K, however, whales re-entered aggressively, driving the count back up to 2,008 addresses. This cyclical accumulation suggests strategic positioning, not panic.
ETF Inflows vs. Market Psychology
The ongoing inflows into spot BTC ETFs—totaling over $1.3 billion in July—signal robust institutional interest. Yet, the absence of emotional excess in sentiment indicators suggests that the market isn’t overheated. This divergence between sentiment and price action could be setting the stage for either a prolonged consolidation or one final liquidity flush.
If whales continue to quietly accumulate during fear-driven dips while retail chases pumps, the classic “buy fear, sell greed” pattern may soon play out again—this time around the $110K battleground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Threshold Network’s tBTC is Now live on Sui: Ushering in a new era for Bitcoin DeFi
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
