Bitcoin has slipped below the $117,500 mark, raising caution among market participants about a potential extended downside move despite positive macroeconomic indicators from the U.S.
BTC Struggles to Hold $120K Resistance
Following a brief rally toward $119,000, Bitcoin failed to maintain upward momentum as the Wall Street session opened, dragging BTC/USD below the $117,500 threshold. The downturn followed signals of increased selling activity from large wallets, particularly from asset manager Galaxy Digital.
Failure to reclaim the $120,000 zone could indicate continued bearish pressure in the short term.
The rejection near resistance aligns with technical indicators showing bearish divergence, as highlighted by popular crypto analysts across trading platforms.
Whale Activity Signals Market Exhaustion
Whale wallets appear to be offloading BTC at local highs, adding to selling pressure and limiting any upside attempts. Trading firm Material Indicators noted that liquidity continues to thin out at higher price levels, hinting at strategic exits by large players.
“Whales distributing at these levels is a red flag for bullish momentum,” one analysis noted, suggesting a return to support near $111,000 or even $108,000 may be imminent.
Short-term holders’ cost basis levels—which currently sit near the $111,000 range—are now being watched closely as potential support zones.
Market Outlook: Down Before Up?
While bullish fundamentals, such as strong U.S. GDP and employment figures, might support long-term optimism, technical analysts warn of a possible corrective wave before the next upward leg. Some traders are pointing to a possible “C-wave” drop targeting $108,000 in the near term.
“Bearish divergence and high expectations for upside could result in a trap,” one analyst commented, adding that a short-term pullback would be healthier for a sustained rally.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.