Bitcoin News Today: Bitcoin Nears $120K as Long-Term Holders Trigger Early Sell Signals

Bitcoin’s ascent toward the $120,000 psychological threshold has triggered early profit-taking activity among long-term holders, with on-chain metrics and institutional movements indicating a cautious repositioning in the market [1]. While the cryptocurrency remains near historic highs, data suggests a strategic pause rather than a bearish reversal, as key participants lock in gains and refine their positioning ahead of potential macroeconomic catalysts.

Long-term Bitcoin holders—wallets holding the asset for over 30 days—have transitioned into net selling territory as prices hover near $120K, according to the 30-day Net Position Change metric [1]. This shift, though modest, marks the onset of distribution, with large participants selectively trimming exposure after a sustained rally. Institutional activity has further amplified downward pressure, notably Galaxy Digital’s reported sale of 80,000 BTC [1]. Such transactions highlight the role of major players in shaping short-term volatility, though analysts emphasize the absence of retail-driven panic, distinguishing this adjustment from broader market stress.

Technical indicators reinforce the narrative of cautious consolidation. The 7-day Aggregated Open Interest Delta has dipped into negative territory, signaling a measured reduction in leveraged positions by large traders [1]. However, the pullback lacks the velocity typically associated with large-scale liquidations, suggesting a tactical pause rather than a bearish pivot. Meanwhile, Bitcoin’s Relative Strength Index (RSI) has cooled to 59 from overbought levels, and the On-Balance Volume (OBV) has flattened near 1.76 million, reflecting diminished buying momentum [1]. These metrics collectively underscore a temporary lull in bullish sentiment, with price action stabilizing just below $120K without aggressive sell-offs.

Market participants remain divided on the trajectory. Some analysts caution that continued profit-taking by whales could escalate into a more pronounced correction if additional large holders follow suit [1]. Conversely, others view the current phase as a necessary consolidation period, with bulls defending recent gains and awaiting a catalyst to retest the $120K level. Bitcoin’s dominance in the crypto market has edged upward to approximately 60.5%, reflecting a flight to safety amid underperformance in altcoins [7]. This trend, coupled with institutional focus on Bitcoin as a primary asset class, suggests resilience despite near-term jitters.

The path forward will likely hinge on macroeconomic developments and institutional behavior. With the Federal Reserve’s upcoming FOMC meeting on the horizon, liquidity conditions and interest rate expectations could influence Bitcoin’s ability to regain upward momentum [5]. For now, the market remains in a delicate balancing act: bulls maintain control of key support levels, while bears monitor for signs of a breakdown. Analysts emphasize that volume trends will be critical—if selling accelerates among large holders, a deeper correction may materialize. Until then, the narrative remains one of cautious optimism, with market participants navigating a pivotal inflection point in Bitcoin’s trajectory.

Sources:

[1] AMBCrypto, [https://ambcrypto.com/bitcoins-120k-resistance-triggers-early-sell-signals/](https://ambcrypto.com/bitcoins-120k-resistance-triggers-early-sell-signals/)

[5] Cryptocurrency News, [https://cryptoadventure.com/bitcoin-price-analysis-btc-correction-over-heres-what-signals-a-new-ath/](https://cryptoadventure.com/bitcoin-price-analysis-btc-correction-over-heres-what-signals-a-new-ath/)

[7] Economic Times, [https://m.economictimes.com/crypto-news-today-live-29-jul-2025/liveblog/122959972.cms](https://m.economictimes.com/crypto-news-today-live-29-jul-2025/liveblog/122959972.cms)