Bitcoin News Today: Bitcoin Dips Below $117,000 as Miners and Whales Signal Increased Selling Activity

Bitcoin faces potential downward pressure in August as multiple on-chain indicators suggest increased selling activity from key market participants, including miners, whale wallets, and long-term holders. The cryptocurrency, which recently dipped below $117,000 to $116,992.72 on Binance, has drawn attention from traders and analysts amid growing concerns of a possible bearish correction [1]. The move has intensified speculation about whether this represents the beginning of a broader bear market or a temporary pullback within an ongoing bull cycle.

Miners have shown increased outflows in July, with data from CryptoQuant indicating a sharp rise in BTC sent from miner wallets. This trend is typically associated with operational cost-covering or profit-taking amid higher prices. Such selling, if sustained, could overwhelm market demand and create downward price momentum [1]. The situation is further complicated by the reactivation of dormant whale wallets, with one holding 80,000 BTC—dormant for over 14 years—suddenly moving funds through Galaxy Digital. This was followed by another large transfer of 3,782 BTC worth over $450 million, raising concerns among traders about a potential sell-off [1].

The most alarming trend, however, is the behavior of long-term Bitcoin holders (LTHs), who turned net negative in late July. This means they are selling more than they are buying, especially as Bitcoin approached the $120,000 resistance level [1]. Analyst Burakkesmeci noted that this pattern mirrors historical profit-taking behavior observed before past corrections, including the drop below $75,000 in February 2024 [1]. The reactivation of large whale positions and the shift in LTH sentiment suggest a growing appetite among key players to lock in gains.

Despite these warning signs, not all analysts are bearish. Kaiko highlighted Bitcoin’s strong market depth and liquidity, which may help the asset absorb heavy selling without a major crash [1]. The presence of institutional traders and treasury firms, which are less sensitive to short-term volatility, could also provide a stabilizing effect on the market [1]. This suggests that while August may see increased volatility, a severe bear market is not yet confirmed.

The price drop has also sparked renewed discussions about macroeconomic factors, regulatory uncertainty, and market psychology. Rising inflation data, central bank policies, and regulatory developments have influenced risk appetite and prompted a reallocation of capital away from high-volatility assets like Bitcoin [1]. Institutional players and long-term holders remain key forces in shaping market direction, with their actions often serving as leading indicators of broader sentiment shifts [1].

Investor strategies are diverging in response to the decline. While new entrants may feel disheartened by the rapid depreciation, experienced traders are evaluating buying opportunities or shorting strategies. Experts recommend diversification, dollar-cost averaging, and the use of stop-loss orders to manage risk [1]. These approaches help mitigate the impact of market timing and protect against further downside risks.

The current correction appears to follow historical consolidation patterns, which have often led to renewed growth phases in Bitcoin’s cycle. Institutional adoption and technological innovation in the Bitcoin ecosystem remain key bullish factors in the long run [1]. However, a definitive bear market would require sustained weakness in trading volumes, broader market sentiment, and a lack of institutional support.

Traders are now closely monitoring macroeconomic data, regulatory developments, and whale activity for directional clues. The outcome will depend on whether the current dip evolves into a deeper correction or becomes a catalyst for a new bull phase. Investors are encouraged to rely on reliable data sources and avoid overreacting to short-term price swings [1].

[1] Bitcoin Price Fall: Shocking Drop Below $117,000 Rocks the Market (https://coinmarketcap.com/community/articles/6888ff3084d211695b705ebd/)

[2] Bitcoin News Today: Bitcoin Falls Below $117000 Amid (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-117-000-profit-regulatory-uncertainty-2507/)

[3] Bitcoin News Today: Bitcoin Flat at $118119 as Fed (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-flat-118-119-fed-decision-looms-sec-approves-kind-etp-redemptions-2507/)