Bitcoin News Today: Galaxy Digital BTC Sell-Off Drives Bitcoin RSI to Historic Lows Signals Potential Recovery as $114.5K Support Holds

Bitcoin’s recent price action has been shaped by a confluence of factors, including a major offloading of Bitcoin by Galaxy Digital and the subsequent impact on technical indicators. On July 25, 2025, the cryptocurrency faced significant downward pressure after Galaxy Digital initiated the transfer of approximately 80,000 BTC to exchanges. This movement, involving assets that had been dormant for over a decade, triggered over $500 million in liquidations within 24 hours. The sudden influx of supply exacerbated market volatility, with the relative strength index (RSI) plummeting to single digits on short timeframes—a historically rare occurrence. Such extreme oversold conditions often signal the potential for a market correction or stabilization, as selling momentum may be reaching exhaustion [1].

Technical analysts have noted a divergence between Bitcoin’s price action and RSI readings, which could foreshadow a reversal. While Bitcoin’s price continues to form lower lows, the RSI has begun to create higher lows, suggesting that the pace of selling is decelerating. This pattern, combined with the RSI’s drop to historic lows, has drawn attention from traders monitoring for potential rebounds. Notably, COINOTAG sources highlight $117,000 as a critical resistance level, with bid support currently holding near $114,500. The concentration of ask orders up to $118,500 underscores a defined trading range where market participants are actively positioning for either a breakout or consolidation phase [2].

Market sentiment remains cautiously balanced, with indicators of panic—such as extreme volume spikes—absent. Traders emphasize that the current selling pressure, while substantial, has not yet reached capitulation levels. This observation is supported by the relatively orderly absorption of spot market selling, which could act as a stabilizing force. Analysts on social platforms have pointed to the rarity of Bitcoin exhibiting such prolonged oversold conditions without a subsequent rebound, reinforcing the possibility of a near-term recovery. However, the trajectory will depend on the interplay between continued distribution risks and the market’s capacity to absorb large-scale sell-offs [3].

For traders navigating this environment, a measured approach is advised. While technical indicators like RSI and volume metrics provide signals for timing entries, the broader context of Galaxy Digital’s BTC movements remains pivotal. Monitoring liquidation heatmaps and order book depth can offer further insights into liquidity and support zones. Investors are encouraged to remain agile, leveraging technical analysis alongside real-time market developments to manage risk effectively. The key price levels of $114,500 and $117,000 will serve as critical benchmarks, with outcomes at these thresholds likely to dictate the short-term direction of Bitcoin’s price.

Source: [1] [title1Bitcoin RSI Signals Potential Recovery Amid Galaxy Digital BTC Sell-Off and Market Volatility July 25, 2025] [url1https://en.coinotag.com/bitcoin-rsi-signals-potential-recovery-amid-galaxy-digital-btc-sell-off-and-market-volatility/] [2] [title2Bitcoin RSI Signals Potential Recovery Amid Galaxy Digital BTC Sell-Off and Market Volatility July 25, 2025] [url2https://en.coinotag.com/bitcoin-rsi-signals-potential-recovery-amid-galaxy-digital-btc-sell-off-and-market-volatility/] [3] [title3Bitcoin RSI Signals Potential Recovery Amid Galaxy Digital BTC Sell-Off and Market Volatility July 25, 2025] [url3https://en.coinotag.com/bitcoin-rsi-signals-potential-recovery-amid-galaxy-digital-btc-sell-off-and-market-volatility/]