Bitcoin News Today: Bitcoin drops 4.24% to $118,000 as whale inflows and key resistance trigger volatility

Bitcoin’s price has retreated to approximately $118,000 following a 4.24% pullback from its record high of $123,091, sparking discussions about short-term volatility and key technical thresholds. Analysts highlight that the $118K level acts as a critical resistance, with bearish indicators like rising whale activity and social sentiment suggesting potential corrections. The exchange whale ratio, currently at 0.52, reflects increased large Bitcoin inflows to exchanges—a pattern historically linked to price declines. COINOTAG notes this metric, combined with the proximity to $118K, as pivotal in shaping Bitcoin’s immediate trajectory [1].

The 30-day moving average of the exchange whale ratio has been trending upward since May, signaling growing institutional or large-holder deposits on trading platforms. This trend often precedes short-term corrections, as larger participants may prepare for selling opportunities. Meanwhile, Bitcoin’s price remains within a falling wedge pattern, a technical formation that typically signals consolidation ahead of a breakout. However, repeated failures to sustain above $118,000 indicate limited buying conviction [2].

Historical context adds nuance to the current dip. Past bull cycles, such as the 50% drawdown in July 2021 before Bitcoin rebounded to $69,000, demonstrate that minor corrections are common during strong market phases. The current 4.24% decline, while notable, pales in comparison to such precedents. Liquidation heatmaps further reveal two major liquidity clusters at $113,200 and $121,800. The price’s proximity to the upper cluster suggests potential upward momentum, but a rise in the whale ratio above 0.6 could trigger deeper pullbacks [3].

Bullish and bearish scenarios hinge on Bitcoin’s ability to reclaim $118K. A sustained breakout, accompanied by a decline in the exchange whale ratio, could push the price toward $122K–$124K. Conversely, if the ratio remains elevated and Bitcoin struggles to reclaim the resistance level, a correction toward $111K–$112K becomes probable. Analysts emphasize that traders should closely monitor these metrics to gauge market momentum.

Long-term fundamentals, however, remain robust. Institutional adoption and network activity continue to underpin Bitcoin’s value proposition, offering reassurance to investors with extended time horizons. Short-term volatility, while disruptive, is viewed by some as a buying opportunity aligned with historical bull market patterns.

Market conditions were further tested on July 26, 2025, when Bitcoin dipped below $116,000, reflecting broader crypto weakness. Altcoins like Solana experienced sharper declines amid a risk-off sentiment, coinciding with anticipation of the Federal Reserve’s rate decision. This event underscored the interconnectedness of macroeconomic factors and cryptocurrency price action [2].

Despite the bearish signals, technical analysts caution against interpreting the dip as a bear market. Instead, they frame it as a typical consolidation phase during a bull run. The falling wedge pattern’s narrow range suggests a breakout is imminent, though the direction remains uncertain. A decisive move above $118,500 could invalidate the wedge and propel Bitcoin toward $120K, while a sustained drop below $115K may signal a broader correction.

In summary, Bitcoin’s near-term outlook is split between cautious optimism and technical headwinds. While long-term fundamentals remain intact, short-term participants must navigate a volatile landscape shaped by whale activity, liquidity clusters, and macroeconomic uncertainties.

Sources:

[1] [XT Community News](https://www.xt.com/en/blog/community-news/2025-07-26T20:50:18.000Z)

[2] [Cooling markets as Fed rate decision and crypto report](https://discover.luno.com/daily-briefing/)

[3] [Bitcoin Price Today, July 26, 2025: BTC Nears $118K Amid](https://inews.zoombangla.com/bitcoin-price-today-july-26-2025-btc-nears-118k/)