Bitcoin News Today: Bitcoin Hovers Near $120,000 Amid Long-Term Holder Liquidation

Bitcoin (BTC) is currently hovering around the $120,000 mark, with a complex interplay between leveraged optimism and cautious spot distribution shaping its trajectory. According to pseudonymous analyst Mr. Wall Street, while short-term momentum remains robust, the mid-term outlook for BTC could be dampened as long-term holders begin to liquidate their positions.

Mr. Wall Street noted that Bitcoin has established a local bottom around $116,000 following a predicted pullback. He anticipates that the cryptocurrency will rise to between $120,000 and $123,500 in the near term, with a mid-term surge potentially pushing it towards the $133,000 to $140,000 range. However, he cautioned that wallets which accumulated significant holdings during the $16,000 to $20,000 cycle lows in August 2022 have started to offload their spot holdings. This pattern, he observed, is reminiscent of the behavior seen before the last cycle top, suggesting that a market peak could form by late October or early November if this trend continues.

“It’s clear that these individuals know how to play this game,” Mr. Wall Street commented. “The fact they have already started to reduce the size of their own spot positions, after holding for three years, is a sign that they are anticipating a cycle top coming soon.”

Technical analyst CryptoVizArt echoed this sentiment, citing data from CryptoQuant that showed BTC reserves on centralized exchanges have risen to their highest levels since June 25. Historically, such increases have often indicated growing sell-side pressure and typically precede local market tops.

“The market is getting weaker, regardless of what the charts are showing us,” Mr. Wall Street warned on X.

Looking ahead, the immediate outlook for Bitcoin faces several challenges, including the upcoming July FOMC meeting. Although no rate cut is anticipated, markets are already pricing in potential cuts for September, which could lead to a pre-meeting rally followed by a “sell the news” event. At the time of writing, Bitcoin was trading at $119,269, reflecting a slight 0.9% increase over 24 hours but a 2.9% decline over the past week. Despite this, it has gained 9.4% over two weeks and 15.3% in the past 30 days, although it remains 2.9% below its July 14 all-time high.