Bitcoin price is weakening below $120,000 as whale selling intensifies and traders anticipate potential drops to sub-$110,000 levels, despite supportive US economic data.
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Bitcoin fails to reclaim $120,000, signaling bearish pressure.
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Whales are offloading at local highs, adding resistance to upward momentum.
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Short-term holder cost bases near $115,700 and $105,000 act as critical support zones.
Bitcoin price dips below $120,000 amid whale selling and market caution; discover key support levels and what this means for traders today.
Why Is Bitcoin Price Struggling Below $120,000?
Bitcoin price is facing downward pressure after failing to surpass the $120,000 mark during the Wall Street open. Market participants observe increased selling activity from whales, which is creating resistance and pushing BTC/USD below $117,500. This weakness raises the possibility of a drop toward sub-$110,000 levels, as traders brace for further downside despite positive macroeconomic signals from the US.
How Are Whale Transactions Affecting Bitcoin’s Market Dynamics?
Whale activity has become a significant factor in Bitcoin’s recent price movements. Data from order book liquidity indicates that large holders are offloading BTC at local highs, which increases selling pressure. Market analysts note that if the $116,750 support level fails to hold, the $110,000 range could quickly become the next target. This distribution phase by whales is a critical hurdle for bulls aiming to sustain upward momentum.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
What Support Levels Are Short-Term Holders Providing?
Short-term holders (STHs) play a pivotal role in stabilizing Bitcoin’s price during pullbacks. Analytics from CryptoQuant reveal that the cost bases of STHs around $115,700 and $105,000 serve as tested support zones. These levels are expected to absorb selling pressure and prevent sharper declines, offering traders potential entry points during market corrections.
Bitcoin cost basis data by investor cohort (screenshot). Source: CryptoQuant
How Does US Macro Data Influence Bitcoin’s Outlook?
Recent US economic indicators provide a cautiously optimistic backdrop for Bitcoin. The July Job Openings and Labor Turnover Survey (JOLTS) data came in slightly below expectations, signaling a balanced market environment. Additionally, improving Consumer Confidence after a six-month decline suggests growing investor optimism. These factors support the risk asset narrative, underpinning the potential for Bitcoin price recovery despite short-term volatility.
Bitcoin NRPL data (screenshot). Source: CryptoQuant
What Are Traders Saying About Bitcoin’s Near-Term Movement?
Market commentators highlight bearish divergences and anticipate a corrective wave that could push Bitcoin toward $108,000 to $111,000 before any sustained rally. Trading resource Material Indicators warns that a failure to hold $116,750 could accelerate the move lower. Meanwhile, trader Credible Crypto points to a “triple tap” support developing around $115,700, emphasizing its importance as a short-term floor.
BTC/USDT order book liquidity data with whale transactions. Source: Material Indicators/X
BTC/USDT 15-minute chart. Source: Credible Crypto/X
What Are the Key Takeaways for Bitcoin Traders?
- Resistance at $120,000 remains strong: Whale selling is limiting upward price movement.
- Support zones near $115,700 and $105,000 could stabilize price during pullbacks.
- US macro data provides a cautiously positive environment for risk assets, including Bitcoin.
Conclusion
Bitcoin’s price action below $120,000 reflects a market balancing act between whale selling pressure and supportive short-term holder cost bases. While bearish signals suggest potential dips to sub-$110,000 levels, improving US economic data offers a foundation for renewed optimism. Traders should monitor key support zones closely as Bitcoin navigates this critical phase.
Frequently Asked Questions
What causes Bitcoin price to drop below key resistance levels?
Bitcoin price drops below resistance levels mainly due to large-scale selling by whales and profit-taking by investors, which increases downward pressure.
How does improving US economic data impact Bitcoin?
Improving US economic data boosts investor confidence in risk assets like Bitcoin, potentially leading to price stabilization or upward movement.
Key Takeaways
- Bitcoin price faces resistance at $120,000: Whale selling creates downward pressure.
- Short-term holder cost bases provide support: Critical zones near $115,700 and $105,000 stabilize price.
- US macro data supports risk assets: Balanced job openings and rising consumer confidence boost market optimism.
Conclusion
Bitcoin’s current price weakness below $120,000 is shaped by whale distribution and critical support from short-term holders. Despite bearish signals, positive US macroeconomic data suggests a cautiously optimistic outlook. Monitoring these factors will be essential for traders navigating near-term market movements.
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Bitcoin price weakens after failing to reclaim $120,000, signaling bearish momentum.
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Whale selling at local highs increases resistance, while short-term holders provide key support levels.
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US macro data offers a cautiously optimistic backdrop, supporting risk assets including Bitcoin.
Bitcoin price dips below $120,000 amid whale selling and market caution; discover key support levels and what this means for traders today.
Bitcoin price weakness sparks sub-$110,000 targets
Bitcoin price action turned weaker after the Wall Street open, with BTC/USD retreating below $117,500 and under its daily open. Despite earlier attempts to reach $119,000, increased selling pressure from asset managers and whales has created resistance. Traders warn that if key support levels fail, Bitcoin could quickly test sub-$110,000 prices.
Whale selling creates hurdles for Bitcoin bulls
Order book data reveals significant whale transactions offloading Bitcoin at local highs, limiting price upside. Analysts note that if the $116,750 support does not hold, the $110,000 range will likely become the next focus. This distribution phase is a critical challenge for bulls seeking to push prices higher.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Profit-taking still offers “very positive signs”
US job openings and improving consumer confidence data provide a balanced environment for risk assets. Analytics platform CryptoQuant highlights that despite price approaching $120,000, there is no significant profit-taking event signaling a market top. This suggests strong investor conviction and potential for continued upward momentum.
Short-term holder cost bases act as support
Cost basis data from CryptoQuant shows that short-term holders have established strong support zones around $115,700 and $105,000. These levels are expected to absorb selling pressure during potential pullbacks, providing tested floors for Bitcoin price stability.
Bitcoin cost basis data by investor cohort (screenshot). Source: CryptoQuant
Conclusion
Bitcoin’s price action below $120,000 is influenced by whale selling and critical support from short-term holders. While bearish signals suggest possible declines to sub-$110,000 levels, positive US macroeconomic data supports a cautiously optimistic outlook. Traders should monitor these key levels for future market direction.
