The Bitcoin price chart has today shifted from a fully bullish upward trend to a correction. The sharp change from historical highs to a plunge is, in fact, the result of a change in investor sentiment towards this digital asset and the overall market, as Bitcoin has experienced extraordinary increases over the past few days. Now, this drop has raised questions about Bitcoin's next steps and why investors are pushing down its price.
Investor sentiment and trading activity are the most important factors affecting the performance of digital assets. Bitcoin's price is also influenced in the same way, as the cryptocurrency market has experienced massive sell-offs and profit-taking activities, especially among large whale groups.
The MPI (Mining Profitability Index, tracking the ratio of miner outflows to a one-year moving average) has broken above 2, indicating that miners are selling their held Bitcoin, leading to price corrections. The net outflow from exchanges also aligns with the MPI reading, with CoinGape experts noting that a Satoshi-era Bitcoin wallet transferred 9,000 Bitcoins on July 14, followed by another transfer of 7,843 Bitcoins on July 15, 2025.
With nearly $2 billion worth of tokens transferred to Binance/Bybit, strong selling pressure has formed.
The start of the cryptocurrency week and other key market events, such as the release of U.S. Consumer Price Index (CPI), Producer Price Index (PPI), and other data, have also influenced the sell-off. As a result, BTC broke below the support level of $118,000, currently trading at $117,200, with a market cap of $2.33 trillion. Additionally, nearly $400 million in long positions were liquidated within 4 hours.
In the past 24 hours, the total liquidation amount reached $500 million, liquidating 130,573 traders. Additionally, there is a technical backdrop due to the sustained upward trend over several days. The token has officially entered the overbought region, with the MACD indicator showing a bullish crossover, but momentum is slowing down.
Santiment also reported on July 14 that speculation around Bitcoin's price plunge is heating up as investors wait for better entry points. Furthermore, signs of skepticism and trader fatigue in the market have led to profit-taking and a plunge today.
Altcoin rotation challenges Bitcoin's price.
In a semi-bullish environment, investor sentiment has officially entered the greed zone. The altcoin season index soared nearly 45% this week, increasing speculation about the altcoin season and driving funds from BTC to other digital assets.
Another prominent factor is Bitcoin's dominance, which has hindered price increases. Bitcoin's share has dropped from a high of 65.1% in June to 63.5%, confirming this shift. However, as Arthur Hayes and other experts say, the altcoin season is still far off, like a mini season. Moreover, these indicators are insufficient to drive an altcoin season, but they are enough to shift funds from BTC to other markets, affecting its price.
Overall, whale sell-offs and leveraged liquidations have led to this plunge. However, experts like Crypto Express believe this is a pullback aimed at filling the gap between 115,635 and 114,380 points on the Chicago Mercantile Exchange (CME), followed by another massive rebound.
