|
Getting your Trinity Audio player ready...
|
Key Takeaways:
- BTC is stuck below $120K, with $116K and $113K being crucial support zones to watch.
- Whales and leveraged traders are driving downward pressure, signaling caution.
- Exchange inflows, especially from Kraken, indicate profit-taking, delaying potential recovery.
At the time of writing, Bitcoin [BTC] is trading at $118,237, showing minimal change from the previous day’s closing price. Despite commanding a $73 billion trading volume, BTC remains far below its recent all-time high (ATH) of $123,000. The cryptocurrency’s recent downtrend highlights ongoing market volatility and emerging bearish sentiment.
BTC Support Flips to Resistance
Following its earlier rally past $120,000, Bitcoin successfully retested the $110,000 support before turning upward. However, the bullish momentum quickly faded as BTC reversed direction, breaking below last week’s highs and turning them into new resistance.
Historically, Bitcoin respects prior weekly highs and lows, and the current market structure suggests the digital asset could continue its correction phase. If support at $116,000 fails, BTC may revisit $113,000, a key level from last week that could act as the next stopping point.
Whale Activity and Leverage Fuel the Downtrend
The persistent decline in BTC’s price is also linked to major whale activity. One long-time holder, reportedly in possession of 80,000 BTC since the early Bitcoin era, has liquidated their entire position to ETFs, treasuries, and exchanges, according to crypto influencer Marty Party on X.
Update: The new owner did a test tx of 1 $BTC yesterday and another 4hrs ago, then the 4 remaining 10k wallets were emptied into this new wallet.
— MartyParty (@martypartymusic) July 17, 2025
IMO: The deal is done. All 80k Bitcoin are sold to Treasuries, ETFs and Exchanges. https://t.co/9pKp4x10yb pic.twitter.com/UwmPfTcnpK
In addition, high-leverage short positions are gaining momentum. Prominent trader James Wynn is shorting BTC and Hyperliquid [HYPE] with 40X and 10X leverage respectively. His recent gains—$473,000 in 24 hours—after a prior liquidation have put him back in the spotlight, possibly encouraging other traders to follow suit and short the market.
Kraken-Led Exchange Inflows Point to Profit-Taking
Exchange activity also supports the bearish outlook. Julio Moreno, Head of Research at CryptoQuant, revealed that 18,761 BTC flowed into exchanges over the past 24 hours—primarily driven by Kraken.
Another spike of Bitcoin flows into exchanges.
— Julio Moreno (@jjcmoreno) July 16, 2025
This time driven by transfers to Kraken. pic.twitter.com/pJDOgMLTkt
This uptick in inflows suggests that traders are locking in profits amid price weakness. Until outflows rise—indicating renewed accumulation—the bullish momentum is likely to remain suppressed.
Bitcoin’s struggle to reclaim the $120K level, combined with large whale sell-offs, growing short positions, and surging exchange inflows, points toward a market correction phase. While volatility remains, caution seems prudent as structural resistance holds and downward momentum builds.
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: Altcoin Season Alert: 3 Charts Signal Massive Rally as Bitcoin Dominance Hits 8-Week Low
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!
