Bitcoin dropped 2.92% ($3,541) in 24h due to whale-driven profit-taking and technical overextension after hitting $123K ATH.
$2.1B BTC transfer from dormant whale sparked selloff fears
Overbought RSI (86.83) triggered profit-taking
$305M BTC liquidations amplified downside
Deep Dive
1. Primary Catalyst: Whale Activity
A 14-year dormant wallet moved 16,843 BTC ($2.1B) to Galaxy Digital on July 15, 2025 (CoinMarketCap). Concurrently, another whale closed a long position and opened shorts after Bitcoin neared $123K, booking $228K profit (Binance). These moves:
Created panic about institutional distribution
Coincided with price rejection at $123,091 ATH
2. Technical Context: Overheated Indicators
Key metrics signaled exhaustion:
RSI7: 86.83 (most overbought since June 2025)
MACD divergence: Rising price vs flattening momentum
Fibonacci resistance: Failed breakout above 127.2% extension ($129,838)
Traders targeted the 23.6% Fib retracement at $117,237 – precisely where BTC settled (-2.92%).
Conclusion
Bitcoin’s dip reflects natural profit-taking after a parabolic 40% 90-day rally, exacerbated by whale movements and derivatives unwinding. With the 30-day SMA ($108,571) still rising and ETF inflows persisting, this appears corrective rather than trend-reversing.
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