Bitcoin has fallen nearly 5% from its recent all-time high near $123,000. As of July 16, the asset is trading at approximately $117,538. This price movement appears connected to increased activity from miners and long-term holders, who are beginning to realize profits.
While short-term pressure is forming, technical indicators suggest that the long-term uptrend remains intact. On-chain data suggests a temporary correction, followed by a possible recovery.
Miner Activity Suggests Bitcoin Price Pullback May Continue
CryptoQuant’s Miners’ Position Index (MPI) rose above 2.7 this week. The metric indicates that miners are moving more Bitcoin to exchanges than their one-year average. This increase suggests miners may be preparing to sell, which could place short-term pressure on the price.
CryptoQuant contributor Avocado_onchain explained that while the current MPI is elevated, it is still far from extreme levels. He stated that similar MPI activity has occurred during previous bull markets. These periods were often followed by either sideways consolidation or mild corrections before further gains.
Bitcoin’s current trend is still upward. However, when miners increase transfers to exchanges, the market often pauses. This helps absorb selling and reset bullish momentum before continuing upward.
Long-Term Holders Also Take Profits As Market Slows
A separate report by CryptoQuant contributor Onchain School noted profit-taking from long-term holders around ten days ago. These investors moved older coins that had remained dormant for long periods. Historically, such activity is seen during local peaks as early adopters realize profits.
Despite this, Bitcoin pushed to a new all-time high shortly after. This shows that the new demand was able to absorb the selling pressure. The recent decrease in price may now reflect some exhaustion in that buying strength, especially from futures traders.
According to available market data, trading volume fell 9.7% in the last 24 hours to $63.9 billion. Futures volume dropped 14.76%, while open interest declined just 1%, showing reduced participation from leveraged traders.
Bitcoin Maintains Long-Term Bullish Structure Despite Near-Term Weakness
Technical indicators continue to favor a long-term uptrend. Bitcoin is still trading above some important moving averages as well as the middle of the Bollinger bands. The Relative Strength Index (RSI) indicates strength with some 67.42, which is not overbought.
The resistance zone should be for $121,000-$123,000. There is support at the price of around 111,000 and even better support at the price of around 102,000. Should the market retrace to these areas, it may become the prelude to another rally.
Bitcoin continues to enjoy macro elements. The corporate performance also shows no sign of a big-scale departure of keyholders. Although still not at the levels that existed in the past historic topping markets, miner sales have been increasiweng.
The latest movement of Bitcoin is in line with what is observed in bull cycles. When taking profits, the breaks are not likely to be reverses, particularly in such cases where the general outlook and configuration are so robust.
