Yesterday, Bitcoin (BTC) hit a resistance level of $120,000 but faced rejection after reaching a peak of $119,760. Currently, it’s trading at about $118,900. There’s also a growing influx of whales that could lead to more downward pressure on digital assets.
Binan Skudhale Sees Increased Bitcoin Activity
Recent activity on Binance indicates a significant uptick in Bitcoin trading, as noted in a Quicktake post by contributor Borisvest. Specifically, the Binan Skudhale inflow metric spiked notably on July 25th, suggesting higher institutional engagement in exchange deposits.
On that particular day, the total 30-day inflow surged by $1.2 billion, which contributed to increased short-term selling pressure across the market. Data from Coinglass revealed that around $141 million in BTC long positions were liquidated between July 24 and July 25 due to this pressure.
Interestingly, while retail investors are also shifting their holdings onto exchanges, their activity is still relatively minimal compared to the whale movements, indicating that the recent selling pressure is primarily driven by large investors.
The chart reveals that, despite a consistent rise in retail inflows over the past weeks, the sudden increase in whale deposits creates added vulnerabilities in Bitcoin’s pricing structure.
Just before Bitcoin’s rejection at the key $120,000 mark, there was a noticeable rise in whale influx. Since that rejection, BTC has settled between $115,000 and $116,000, now acting as short-term support. Analysts have mentioned:
This area is currently a short-term support zone. If it’s breached, a drop to $110,000 is increasingly likely. However, if Bitcoin can rebound strongly from this range, it might retest $121,000 and even attempt to reach a new all-time high.
Borisvest concluded that Bitcoin’s short-term price path will depend on how well the market absorbs the whale sell-offs. Likewise, Titan, a crypto analyst, suggested that if BTC breaks the $119,900 level decisively, a new all-time high could be in sight.
What Does Exchange Data Reveal?
The influx of whales isn’t the only thing concerning investors. Bitcoin has recently achieved its highest level in a month, implying that some holders may be bracing for a potential pullback or consolidation before another uptrend resumes.
Moreover, Binance’s share of BTC spot trading volume has significantly increased recently, hinting that there might be some rallies on the horizon for the leading cryptocurrency. As of now, Bitcoin is trading at approximately $118,926, reflecting a 0.4% increase over the last 24 hours.
