Whales Shorting As Bitcoin Price Retraces, Will It Fall Back To $110K

Key Insights:

• Whale 0x960B flipped short after an OG wallet began selling.
• Bitcoin price lost support at $120K, signaling a potential deeper correction.
• Total Value Locked in Bitcoin DeFi hit $7.1 billion.

Bitcoin price has faced a sharp correction after reaching a new all-time high at $123,091. The crypto king has once again raised alarms in the market, as the on-chain behavior of whales shows a change of plans.

Statistics display that a Bitcoin OG wallet, carrying 80,00009 BTC with an estimated value of about $9.46 billion, started selling.

As soon as this major one began to sell, another whale forced a big long in a short direction. Blockchain data reveals that this crypto whale has already made an unrealized profit of $228,000 on the trade. This implies that it is very confident that the bearish shift will be effective.

This flip is also timed with visible technical and volume-based indicators that Bitcoin could be in the correction period following a drastic rally. The concerted effort of well-heeled institutions is coming into the radar as the wider market evaluates downside risk.

Bitcoin Price Pulls Back After a Parabolic Surge

Bitcoin price has fallen to 116,790.21 after experiencing a 4.22% decrease according to the stats shown by CoinMarketCap. The sell-off took place after a sharp rally, which raised the price after holding at the $96,000 level in late June to a high above the mark of $122,000 in the middle of July.

The daily trading volume of Bitcoin is still intact, growing by 37.54% in the past 24 hours to $148.4 billion. However, there is a new form of downward pressure brought by the viral hikes in the short-term profit-taking and the exit of whales.

The FDV (fully diluted valuation) is at the current level of 2.45 trillion, and the long-term optimism is still present, as the retracement in the short term is definitely in progress. Another indication of increased speculation and high rates of turnover with price volatility is the Vol/Mkt Cap level of 6.34%.

Bitcoin Price Breaks Down from a Rising Trend Channel

Looking at 4-hour Bitcoin price charts, there is a specific parabolic uptrend evident in the course. It commenced as early as July 5 and peaked on July 14. This bullish structure is marked by a constant increase of highs and lows.

Nevertheless, the latest candles indicate a sudden failure to support this rising channel. Bitcoin has lost its position above $120,000, descending to the $116,000 area.

This breakdown is the evidence in the refutation of the short-term bullish structure. Suppose this correction intensifies, the $114,000 and $110,000 levels could act as possible downside objectives using previous support zones.

The shift is supported by technical indicators. The Average Directional Index (ADX) has fallen below the peak, which was observed in recent days. It currently stands at 41.16, indicating that although the trend is strong, it is declining.

The momentum is obviously slowing, and as selling pressure accumulates, there is a possibility of a wider reversion to the mean.

There is additional support of bearish activity by the Volume Delta bar chart as well. Big red bars on the July 14 session, especially, are signs of net bear selling with practically no take-ups. This action commonly indicates the institutional exit or the whale-level exit as opposed to retail-based panic.

TVL Growth Signals Long-Term Strength Despite Volatility

Although Bitcoin price has fallen temporarily, the Total Value Locked (TVL) remains upward in DeFi protocols. As per the statistics provided by Artemis, TVL in the Bitcoin network has leaped to $7.1 billion, or a 38.2% growth since May.

This growth demonstrates that more capital is finding a way into DeFi applications native to Bitcoin, like Stacks, RSK, and protocols.

Such an increase in TVL is an indication that the fundamental activity and value on the network will not be negatively affected by a price correction. In the past, the TVL growth through price adjustment has been viewed as a long-term confidence.

Bitcoin bulls have to contend with the $116000-114000 support zone in the short term if it moves lower to $110000 in the brunt of a correction. Just below that, we have psychological and technical support at $105,000 and $100,000 levels.

Conversely, Bitcoin price will have to recapture the $120,000 mark with volume and renewed buying pressure to build up fresh bullish momentum.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.