Bitcoin prices have moved to just 2% this week, even with Altcoins flying. But don’t be fooled by quiet people.
Beneath the surface, the whales are moving, and the data suggest that a short-term cooldown may come before BTC equips it for the next run.
Whale-led exchange influx raises red flag
Bitcoin’s short-term momentum could be under pressure again. This time, it’s from the largest owner. On July 17th, wallets with 1,000-10,000 BTC (classified as whales) and over 10,000 BTC (Mega whales) moved around 50,200 BTC in exchange. At current prices of nearly $120,000, potential sell-side liquidity is over $6 billion.
Historically, these large influent clusters have preceded price corrections.
A similar spike occurred on July 7, when 2,500 BTC was deposited, coinciding with a price drop of $947, ranging from $109,216 to $108,269. Another major influx event occurred around July 14th and 15th, leading to a decrease of about 1.7%. This latest surge in whale activity is the biggest in over a month, suggesting updated distribution pressures, as Bitcoin struggles close to its best.
Short term holders may be profitable
Retailers are also cautious in conduct. Short-term holders used the Output Profit Ratio (SOPR), which tracks whether new BTC wallets are being sold in profits.
A SOPR value above 1 indicates that the holder is on average achieving profits. Since that spike, the SOPR has submerged to just 1.02, showing signs of cooling, but remains rising. Previous SOPR spikes in late June caused mild pullbacks, suggesting that similar movements could be brewed.
Check the intersection of the SOPR line above the price. In most cases, similar crosses led to a decline in prices. The same thing happened on July 16th.
Bitcoin price action on Crossroads, what is the possibility of a 3% dip?
Bitcoin is currently trading on tight channels between $117,293 and $123,203, with the latter serving as its previous high. Despite the record-highest formation earlier this month, Bitcoin prices only won 2% this week, but many Altcoins have posted double-digit gatherings. The market appears to be seeing a critical movement.
But there are a few numbers you should know.
On June 15th, 33,663 BTCs were flowing mainly in exchanges from whales and mega whale wallets, with Bitcoin prices falling 1.7% from $119,857 to $117,835. On July 17th, inflows surged to 50,214 BTC, about 49% higher than June levels.
Estimating this proportionally, Bitcoin prices could face a 2.5% to 3% drop from the current price of $120,000, which will range in the $117,000 range.
This is closely in line with the major support level of $117,293, which took place multiple times in July. If that level breaks, Bitcoin’s next major support will be around $113,637, according to the FIB Extension Indicator.
This short-term bearish paper reduces whale inflows, keeps the short-term SOPR (used output profit ratio) cools towards 1.00, reducing profit-raising pressure and reducing signal. A recovery of over $123,203 would flip short-term momentum in the bull’s favor.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
