Bitcoin News Today: Bitcoin Holds Above $110K Despite 40,000 BTC Inflow and 6.2% Correction, Market Consolidates Ahead of $120K Resistance

Bitcoin’s price has shown remarkable resilience above the $110,000 level despite a significant 40,000 BTC inflow into exchanges and renewed activity from dormant wallets dating back over a decade. Neutral funding rates and a sharp rise in Bybit’s open interest (OI) suggest the market is in a phase of consolidation, with both buyers and sellers poised for a potential breakout [1]. The cryptocurrency briefly rebounded to $117,000 on July 26, 2025, following a 6.2% correction from its peak of $123,471 earlier in July, though it remains below the critical $120,000 resistance zone. Analysts from COINOTAG note that while short-term selling pressure and profit-taking are evident, medium-term buyers continue to absorb supply, maintaining a delicate balance in market sentiment [1].

Exchange inflows highlight divergent strategies among participants. Binance reported a surge in short-term holder (STH) inflows, with the STH inflow ratio surpassing the 0.4 threshold—a historically bearish signal tied to retail selling [2]. Conversely, Kraken recorded large whale-driven outflows, including a 9,600 BTC transfer on July 22, interpreted as long-term accumulation by institutional or high-net-worth actors [3]. These contrasting movements underscore fragmented market sentiment, where cautious retail traders hedge against potential declines while strategic institutional players position for volatility.

Binance’s reserve metrics further complicate the narrative. The exchange’s unrealized profit on Bitcoin reserves reached a record high of 60,000 BTC, despite a 9.2% decline in total holdings since September 2024 [4]. This increase in unrealized gains, despite ongoing outflows, suggests appreciation of remaining positions, reinforcing Binance’s financial stability. Meanwhile, 16,000 BTC remains locked in custodial wallets for the BTCB token on the BNB Chain, signaling growing confidence in decentralized custody solutions [4].

Market dynamics remain volatile, with a record $44.5 billion in open interest amplifying speculative activity [1]. Over $500 million in leveraged liquidations have been reported recently, reflecting fragile positioning on both long and short sides [5]. On-chain indicators like the Bitcoin Fundamental Index show resilience, but overbought RSI readings and the $120,000 resistance level suggest a natural pause in the uptrend. Analysts caution that further corrections could occur if margin calls trigger additional liquidations [6].

Macro trends and retail behavior may influence the near-term trajectory. Traders are pricing in a 56% probability of a September Federal Reserve rate cut, according to analyst forecasts [14], a factor that could either bolster or pressure Bitcoin’s momentum. For now, the cryptocurrency is expected to trade within a $117,000–$120,000 range, with bulls eyeing a breakout and bears monitoring support levels [14]. The altcoin market has mirrored Bitcoin’s stagnation, with XRP and Solana experiencing sharper declines as risk-off sentiment persists [13].

Psychological indicators remain mixed. The crypto Fear and Greed Index stands at 74, reflecting lingering optimism despite recent pullbacks [15]. Analysts are divided on the outlook: some view the consolidation as a healthy correction, while others warn of potential retracements to $113,000. The absence of major cycle-top indicators like Pi Cycle Top or MVRV thresholds suggests the current phase remains part of a broader uptrend [9].

Bitcoin’s ability to hold above $110,000 amid significant exchange inflows and ancient wallet activity highlights the market’s underlying strength. Neutral funding rates and increased Bybit OI reflect a cautious yet balanced environment. As profit-taking continues, both bulls and bears are preparing for the next decisive move, making this a pivotal moment for crypto market participants [1]. Sustained buying pressure will be critical to retesting key resistance zones, but the $117,000 level appears to offer temporary support for now.

Sources:

[1] [Bitcoin Holds Above $110K Amid Exchange Inflows and Rising Open Interest](https://en.coinotag.com/bitcoin-holds-above-110000-amid-increased-exchange-inflows-and-rising-open-interest-suggesting-potential-market-consolidation/)

[2] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[3] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[4] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[5] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[6] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[9] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[13] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[14] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[15] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)