Price Action Steadily Declining

After reaching $119,000 briefly during Tuesday’s Wall Street opening, the leading cryptocurrency by market cap gave up its gains and returned below its daily opening level. BTC/USD currently struggles near $117,500.

Whale Sales Create Headwinds

Data from Cointelegraph Markets Pro and TradingView indicates whale selling occurred as prices approached $120,000, creating hurdles for a sustained price push higher. Summarizing prevailing sentiment, popular trader @BigMike7335 tweeted: “BigBTC thinking we about to start the C wave here to $111,000.”

Technical Support under Pressure

Traders warn successful downside breaching could trigger sharp corrections:

• “Looks to be a clean triple tap developing on $BTC here” noted @Credible_Crypto, citing resistance around $116,750 and key supportive levels near $115.7K and $105K.
• @Material_Indicators observed whales appear to be distributing, suggesting institutional selling puts downward pressure.
• $116,750 is viewed as a critical holding level. @Roman @Material_Indicators posits: “We’ve got bear divs, everyone expects up, would make more sense to push down before a potential move higher.”

Contrarian Signals Emerge

Despite bearish short-term price action, some analytics indicate structural support might soon stabilize the price:

• CryptoQuant’s “Quicktake” blog highlights improving macroeconomic indicators like slightly below expectations JOLTS data (creating “not too hot, not too cold” market conditions) and a reversal in declining Consumer Confidence. This suggests a positive environment for risk assets.
• CryptoQuant also noted a lack of significant profit-taking pressure on the Net Realized Profit and Loss (NRPL) chart, indicating investors aren’t rushing to take substantial profits near $120,000.
• Short-term holder (STH) cost bases are identified as crucial support zones by CryptoQuant: “$115.7K and $105K levels (realized prices from ~15-30 day holders) could act as strong, tested support zones” in potential price pullbacks.

Market Sentiment Split

While some sellers, particularly whales, entered the market near recent highs, buyers saw opportunities during temporary dips. However, commentary from traders suggests a lack of broad-based strength, with any further downside potentially leading to intensified selling volume.