Bitcoin News Today: Bitcoin Falls 4.24% Below $118K as Exchange Whale Ratio 0.52 Signals Short-Term Correction Risk

Generated by AI AgentCoin World
Saturday, Jul 26, 2025 10:52 pm ET1min read
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Aime RobotAime Summary

- Bitcoin fell 4.24% to $118,000, facing key resistance amid rising exchange whale inflows (0.52 ratio) and bearish social sentiment.

- Historical patterns suggest potential correction toward $111K–$112K if resistance fails, mirroring 2021's 50% drawdown before rebounds.

- Technical analysis highlights $113,200 and $121,800 liquidity clusters, with whale activity and RSI indicators critical for directional clarity.

- Long-term fundamentals remain strong via institutional adoption and inflation-hedging appeal, though short-term volatility depends on macroeconomic factors.

Bitcoin’s price has retreated slightly to below $118,000 after a 4.24% pullback from its record high of $123,091, raising questions about its near-term trajectory. The cryptocurrency faces critical resistance at this level, with technical metrics and whale activity suggesting a potential short-term correction. The exchange whale ratio, currently at 0.52, indicates growing large-scale

Bitcoin
inflows to exchanges—a trend historically linked to downward price adjustments [1]. This metric, combined with bearish social sentiment, signals increased caution among traders.

The current consolidation phase mirrors past bull market corrections, such as the 50% drawdown in July 2021 before Bitcoin rebounded to $69,000. However, a sustained breakout above $118K could reignite bullish momentum, potentially testing the July 14 all-time high of $122,197. Conversely, failure to reclaim this resistance may result in a deeper correction toward the $111K–$112K demand zone, particularly if the exchange whale ratio remains above 0.5 [3].

Technical analysis highlights two key liquidity clusters at $113,200 and $121,800. The price’s proximity to the upper cluster suggests upward potential, but rising whale inflows could amplify selling pressure. Crypto strategist Alex Wilkins noted that a resistance breakout by early August is plausible if momentum holds, though this remains speculative [3]. Retail investors remain optimistic, with strong HODL sentiment counterbalancing short-term volatility.

Long-term fundamentals remain intact, driven by institutional adoption, regulatory clarity, and Bitcoin’s role as an inflation hedge. However, immediate market dynamics are shaped by macroeconomic factors and global economic events. Traders are advised to monitor the exchange whale ratio and RSI indicators for directional clues. A decisive move above $118K could pave the way for further gains, while a breakdown below $115K might trigger a reassessment of current positions [3].

Market participants should remain cautious as Bitcoin navigates this pivotal juncture. While short-term corrections are common during bull cycles, the outcome hinges on whether the asset can overcome key resistance levels without renewed large-scale selling pressure.

Source: [1] [Bitcoin Faces Key Resistance Near $118K as Metrics Suggest Possible Short-Term Correction](https://en.coinotag.com/bitcoin-faces-key-resistance-near-118k-as-metrics-suggest-possible-short-term-correction/)

[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/)