Bitcoin news: BTC price retreats below $122k amid profit-taking and whale activity
Bitcoin retreats after record high
Bitcoin price rally since early July has finally met a stumbling block after climbing to new all-time highs.
On Monday, the cryptocurrency broke above $122,000 for the first time in history, extending the strong uptrend that had dominated the month. However, price struggled to hold this level, retreating to close the day at $119,800 after shedding more than half of the intraday gains.
Highlights
-Bitcoin slips over 3% today to near $116,200 after Monday’s record high above $122,000
-Whale transfers spark selling as RSI drops below 50 hinting at deeper short-term pressure
-Key supports at $115,000 and $112,000 eyed today as traders watch correction depth
Unexpected whale activity sparked the retracement. A long-dormant wallet, reportedly linked to the Satoshi-era, moved around 17,000 BTC worth over $2 billion. This large-scale transfer raised concerns that long-term holders may be preparing to offload at the top, especially as retail participants have been flooding into the market. The Binance Fear and Greed index pointed to greed and FOMO as the prevailing emotions among retail investors, often an early sign that a local top may be in.
BTC price dynamics (May - July 2025). Source: TradingView
By Tuesday, the pressure had accelerated. Bitcoin slipped over 3% during the Asian session to touch a three-day low around $116,200, where it was last seen during the European hours. This drop followed the Relative Strength Index, showing overbought conditions across multiple timeframes, prompting speculation that a technical pullback was likely.
Bitcoin's focus turns to 50 EMA support as selling volume seems relatively controlled
Looking at the 4-hour chart, the trend appears to be in short-term correction mode. Bitcoin has already fallen below the 20 EMA at $117,700, and selling momentum has continued to build. While the pullback has come on declining volume, which typically suggests it is corrective rather than trend-ending, there are signs that the retracement may extend further.
The RSI on the 4-hour timeframe has now crossed below the neutral 50 level, entering bearish territory. This hints at further pressure ahead. The next area of interest is the 50 EMA on the 4-hour chart at $115,000, which could provide temporary support. However, if this level fails to hold, focus will shift to the previous all-time high from May at $112,000. This price zone now also aligns with the 100 EMA, reinforcing its significance as a possible floor if selling deepens.
Hence, Bitcoin’s latest pullback appears to be a reaction to extreme bullish sentiment and whale movement rather than the start of a major trend reversal. Still, traders will closely monitor the $115,000 and $112,000 areas to assess whether this retracement finds stability or extends into something deeper.
Investors bought more Bitcoin as a hedge against concerns over the growing U.S. deficit. Bitcoin broke above $122,000, and the RSI moved into overbought territory.
