Bitcoin Shows Reduced Selling Pressure and Holds Support, Awaiting Potential Breakout Above $120,000

• Taker sell volume has collapsed from $17.8B to $1.2B, signaling reduced seller aggression.

• Net Unrealized Profit/Loss (NUPL) peaks coincide with profit-taking at the $119K-$120K resistance zone.

• Bitcoin price holds above $117K support but needs a clean breakout above $120K to resume rally momentum.

Bitcoin taker sell volume plunges 93%, signaling bearish retreat. Profit-taking at resistance persists. Watch for a breakout above $120K to confirm rally. Stay updated with COINOTAG.

Why Has Bitcoin’s Taker Sell Volume Collapsed by 93%?

Bitcoin’s taker sell volume has sharply declined, dropping nearly 93% since July 25, from $17.8 billion to $1.2 billion. This steep fall indicates that bearish traders are stepping back, reducing selling pressure significantly. Typically, such a decline in sell-side aggression suggests exhaustion among sellers and a potential setup for upward price movement.

Taker sell volume measures the value of trades where sellers aggressively market-sell into bids. The current low levels reflect diminished fear and urgency to exit positions, which is a bullish sign. However, despite this, Bitcoin’s price has remained range-bound, indicating the rally is paused but not invalidated.

Bitcoin price and Dropping Taker Sell Volume: Cryptoquant

How Does Reduced Taker Sell Volume Affect Market Sentiment?

Reduced taker sell volume signals that sellers are less aggressive, often reflecting a shift in market sentiment from bearish to neutral or bullish. This decline often precedes price stabilization or upward moves, as selling pressure eases and buyers gain confidence. According to COINOTAG market analysis, this metric is a reliable indicator of diminishing bearish momentum.

What Role Does Net Unrealized Profit/Loss (NUPL) Play in Bitcoin’s Price Action?

NUPL measures unrealized profits among Bitcoin holders and helps identify when profit-taking is likely. Bitcoin has repeatedly tested the $119,000–$120,000 resistance zone, with NUPL peaking between 0.57 and 0.58 during these attempts. Each peak coincided with price pullbacks, signaling that traders are taking profits at this key level.

This pattern shows that $119K-$120K acts as a psychological barrier where holders realize gains, temporarily capping upward momentum. Since the last rejection, NUPL has decreased slightly while price remains steady, suggesting profit-taking has subsided and the market is consolidating before the next move.

Bitcoin price and NUPL: Cryptoquant

Why Is NUPL Important for Predicting Bitcoin’s Next Move?

NUPL compares Bitcoin’s market capitalization to its realized capitalization, indicating how much profit holders have on paper. High NUPL values often trigger selling as investors lock in gains. A declining NUPL with stable prices suggests profit-taking is complete, potentially setting the stage for renewed buying interest and price appreciation.

What Is Bitcoin’s Current Price Outlook and Key Levels to Watch?

Bitcoin price remains above critical support levels of $117,000 and $118,000, supported by Fibonacci retracement zones (0.382 and 0.5), but faces strong resistance at $120,000. This resistance aligns with the 0.786 Fibonacci level and recent NUPL peaks, creating a significant hurdle for bulls.

Until Bitcoin decisively breaks above $120,000, the rally remains on hold. A successful breakout could propel BTC toward $122,000 and beyond, fueled by diminished selling pressure and digested profit-taking. Conversely, a drop below $117,000 risks a bearish shift targeting $114,000, undermining the current bullish structure.

Bitcoin price analysis: TradingView

How Can Traders Use These Levels to Manage Risk?

Traders should monitor the $117,000 support closely as a critical stop-loss level. Maintaining above this zone preserves the bullish outlook. Watching for a clear breakout above $120,000 is essential to confirm renewed buying momentum. Risk management strategies should consider these technical levels to navigate potential volatility effectively.

Frequently Asked Questions

How does taker sell volume affect Bitcoin’s price trends?

Taker sell volume reflects the intensity of selling pressure. A decline in this volume usually signals reduced bearish momentum, often preceding price stabilization or upward movement in Bitcoin.

What is NUPL and why does it matter for Bitcoin investors?

NUPL measures unrealized profits among holders. High NUPL values often trigger profit-taking, while a decline with stable prices suggests profit-taking has occurred, potentially leading to renewed buying interest.

Key Takeaways

• Taker sell volume dropped 93%: Bears have largely exited, reducing selling pressure.
• NUPL peaks signal profit-taking: The $119K-$120K zone is a key resistance where traders lock in gains.
• Price awaits breakout: Holding above $117K support but must clear $120K to confirm rally continuation.

Conclusion

Bitcoin’s sharp decline in taker sell volume and profit-taking at the $120,000 resistance reveal a market in consolidation rather than decline. With selling pressure fading and support intact, the next breakout above $120,000 could ignite a fresh rally. Investors should watch these key levels closely as Bitcoin’s price action unfolds.