Bitcoin News Today: Bitcoin in Neutral Phase Amid Whale Outflows and Consolidation Near $118,000

Bitcoin currently resides in a neutral market phase, with its heat index stabilizing at 44%, indicating a balance between buyer and seller forces without signs of extreme market conditions [1]. This reading, part of the Bitcoin Heat Macro Phase index, suggests indecision among major participants and avoids the extremes of overheating or undervaluation [1]. At the same time, the price of Bitcoin trades near $118,000, absorbing modest ETF inflows while experiencing pressure from profit-taking activity [1]. This equilibrium results in price consolidation, with potential for either a breakout or a pullback depending on how market sentiment evolves [1].

Realized profits, which had surged to $3.2 billion following Galaxy Digital’s 80,000 BTC distribution, have since cooled to $1.4 billion. This decline suggests the market is absorbing supply without causing sharp price corrections. While elevated profit-taking remains, aggressive selling has eased, pointing to a cautious stance rather than a full accumulation phase [1].

Meanwhile, whale activity signals a shift in strategy among large holders. Over the past week, outflows from large wallets surged by 178.67%, outpacing inflows that increased by 70.22%. This imbalance suggests more Bitcoin is leaving whale wallets than entering, which is often a sign of distribution [1]. Though some accumulation continues, the dominant outflows point to strategic repositioning or a cautious reduction in exposure by major players [1]. Analysts suggest this could lead to increased volatility and downward pressure on prices if buying interest fails to match the selling pressure [1].

Technically, Bitcoin trades within an ascending channel near $118,200, just below the critical resistance level at $119,900 and the upper Bollinger Band. The immediate support level is estimated around $116,400, which provides a buffer against further declines [1]. The Relative Strength Index (RSI) has begun to decline from 63, signaling weakening bullish momentum. Additionally, spot Taker Cumulative Volume Delta (CVD) highlights dominant sell-side pressure, indicating bears may challenge the support level if buyers fail to strengthen [1]. The cryptocurrency’s immediate trajectory will depend on its ability to defend key support levels amid rising distribution signals from large holders [1].

The combination of neutral macro conditions, cooling realized profits, and increasing whale outflows suggests the market is in a transitional phase. Investors remain cautious, with sentiment balanced but watchful for the next directional move. The key to Bitcoin’s near-term performance lies in its ability to absorb selling pressure and regain bullish momentum before a potential retest of support levels [1].

Sources:

[1] Bitcoin Shows Neutral Macro Pressure Amid Elevated Profit-Taking and Increasing Whale Outflows July 31, 2025 (https://en.coinotag.com/bitcoin-shows-neutral-macro-pressure-amid-elevated-profit-taking-and-increasing-whale-outflows/)