- Bitcoin price drop to $105,000 is becoming a real possibility as whales move large amounts of BTC to exchanges, indicating profit-taking.
- Mixed technical indicators and weakening strength further support the risk of a potential correction.
The crypto world is on edge as analysts warn that Bitcoin could be facing a steep correction. Despite currently trading above $117,000, recent movements by large investors and key technical signals suggest a potential drop toward $105,000. Could the market be gearing up for a major sell-off?
Bitcoin Whales Signal Profit-Taking as Exchange Inflows Spike
One of the biggest red flags comes from rising Bitcoin inflows to exchanges. According to CryptoQuant, this marks the highest level in nearly a month. Large holders—or whales—have transferred an average of $45 billion worth of BTC to exchanges between July 14th and 18th, a jump from $28 billion earlier this month.
Analyst Darkfost warns that these inflow spikes often occur before local highs. Historically, when exchange inflows exceed $75 billion, a correction has followed. Although daily movements have slowed slightly, the whale activity remains a concern for many traders.
Technical Indicators Offer a Mixed Outlook
On the technical front, the situation is murky. The Bull Score Index remains high at 80, signaling strong bullish sentiment. But as analyst Arab Chain points out, such an elevated score could mean the market is overheating.
Bitcoin is hovering around its 20-day moving average of $114,500. It’s sitting between two key levels—the lower Bollinger Band support at $105,000 and resistance near $123,500. The RSI reading of 65 and falling trading volume indicate weakening strength. A break below the average could send BTC falling, while surpassing $122,000 may reignite a rally.
Bitcoin Role Shrinks as Altcoins Gain Spotlight
While Bitcoin is still up over 14% from last month, its market dominance is slipping. Traders are turning their eyes to altcoins, hinting at a potential shift into altseason. Still, BTC remains a key influencer in the broader crypto space, and its next move could set the tone for the entire market.
ALSO READ:Why Bitcoin Isn’t Ready to Replace Gold Just Yet
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