Bitcoin News Today: Bitcoin's taker sell volume drops 93% as price holds $117,000 support, awaits $120,000 breakout

Bitcoin’s recent price action has shown a notable shift in market dynamics as selling pressure has significantly subsided, with technical indicators suggesting a potential breakout could be on the horizon. Data from market analysis platforms indicates that Bitcoin’s taker sell volume—a metric reflecting aggressive sell-side activity—has plummeted by 93% since July 25, falling from $17.8 billion to $1.2 billion [1]. This sharp decline underscores a reduction in bearish momentum, with traders increasingly retreating from aggressive short positions. The drop aligns with broader patterns observed in crypto markets, where such a steep reduction in selling activity often precedes a stabilization or upward correction.

The muted selling pressure coincides with Bitcoin’s ability to hold above critical support levels near $117,000 and $118,000, which are reinforced by Fibonacci retracement zones [1]. However, the asset remains range-bound as it tests the $119,000–$120,000 resistance zone. This level acts as a psychological barrier, with repeated attempts to breach it met by profit-taking activity. The Net Unrealized Profit/Loss (NUPL) metric, which measures unrealized gains and losses across the Bitcoin network, has peaked at 0.57–0.58 during these tests, signaling periods of concentrated profit-taking by holders [1]. Each peak has historically coincided with temporary pullbacks, suggesting that traders are locking in gains rather than committing to further upward moves.

Despite the consolidation, the technical setup remains bullish for a potential breakout. Bitcoin’s price has maintained a stable position above its key support levels, and the declining taker sell volume indicates that sellers are losing urgency [1]. Analysts note that a clean breakout above $120,000 would be critical for confirming renewed buying momentum. Such a move could propel the price toward $122,000 and beyond, fueled by the digestion of prior profit-taking and the exhaustion of bearish pressure. Conversely, a failure to clear the $120,000 threshold or a drop below $117,000 could trigger a bearish scenario, with the next support target at $114,000 becoming a focal point [1].

For traders, the current environment emphasizes the importance of risk management. Monitoring the $117,000 support level is essential as a stop-loss reference, while a confirmed breakout above $120,000 would validate the continuation of the bullish trend. The interplay between taker sell volume and NUPL further reinforces the idea that the market is in a consolidation phase rather than a bearish reversal. As Bitcoin awaits a decisive price move, the focus remains on whether buyers can overcome the resistance at $120,000 to rekindle the rally that has characterized much of the year.

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[1] Title: Bitcoin Shows Reduced Selling Pressure and Holds Support, Awaiting Potential Breakout Above $120,000 July 29, 2025

URL: https://en.coinotag.com/bitcoin-shows-reduced-selling-pressure-and-holds-support-awaiting-potential-breakout-above-120000/