Bitcoin News Today: Bitcoin Faces 2.5% to 3% Drop as Whales Transfer 50,200 BTC to Exchanges

Bitcoin is currently experiencing potential short-term sell pressure as over 50,000 BTC from whale wallets were transferred to exchanges on July 17. This significant movement of Bitcoin indicates increased liquidity for sellers, which could lead to a price correction in the near future. The transfer of such a large amount of Bitcoin to exchanges suggests that whales are preparing to sell, which could put downward pressure on the price of Bitcoin.

Retail traders are also showing signs of profit-taking, with the short-term Spent Output Profit Ratio (SOPR) peaking at 1.05. This indicates that many retail traders are selling their Bitcoin at a profit, which could further contribute to the sell pressure in the market. The SOPR is a measure of whether newer Bitcoin wallets are selling at a profit, and a value above 1 indicates that holders are, on average, realizing profits. The recent spike in SOPR suggests that retail traders are taking profits, which could lead to a short-term price correction.

According to COINOTAG data, Bitcoin is currently trading between $117,000 and $123,000. However, a possible dip is expected before a rebound, contingent on whale inflows cooling off. The current price range of Bitcoin suggests that the market is in a state of consolidation, with buyers and sellers evenly matched. However, the potential dip in price could be triggered by the sell pressure from whales and retail traders.

Historically, large inflow clusters of Bitcoin to exchanges have preceded price corrections. For example, on July 7, a transfer of 2,500 BTC to exchanges coincided with a price dip of $947. Another larger inflow event around July 14–15 led to a 1.7% decline in price. The latest surge in whale activity is the largest in over a month and suggests renewed distribution pressure just as Bitcoin struggles near its highs. This historical data suggests that the current transfer of 50,200 BTC to exchanges could lead to a similar price correction in the near future.

Bitcoin is currently trading in a tight channel between $117,293 and $123,203, with the latter acting as the previous high. Despite the all-time high forming earlier this month, Bitcoin price has gained only 2% this week while many altcoins have posted double-digit rallies. The market appears to be watching for a decisive move. However, the current transfer of 50,200 BTC to exchanges could trigger a 2.5% to 3% drop in price, bringing it down to the $117,000 range. This aligns closely with the key support level at $117,293, which has held multiple times in July. If that level breaks, Bitcoin’s next major support appears around $113,637.

This short-term bearish thesis would be invalidated if whale inflows decline, and short-term SOPR continues cooling down toward 1.00, signaling waning profit-taking pressure. A reclaim above $123,203 would flip short-term momentum back in favor of the bulls. Investors should closely monitor these key indicators for signs of market direction and adjust strategies accordingly. The current market dynamics reveal a cautious environment shaped by significant whale activity and profit-taking from short-term holders. The substantial BTC inflows to exchanges and elevated SOPR levels suggest a probable short-term price correction near $117,000. However, sustained declines in whale inflows and a cooling SOPR could quickly restore bullish momentum.