Bitcoin Price Pullback Likely as Miners Take Profits, But Bullish Momentum Prevails | Smarti News – AI-Powered Breaking News on Tech, Crypto, Auto & More
Bitcoin Price Pullback Likely as Miners Take Profits, But Bullish Momentum Prevails

Bitcoin Price Pullback Likely as Miners Take Profits, But Bullish Momentum Prevails

2025-07-16
0 Comments Zoya Akhtar

3 Minutes

Bitcoin Dips After Record High as Miners Realize Profits

Bitcoin (BTC) has seen a modest retreat after reaching a new all-time high near $123,000. The world’s leading cryptocurrency is now trading around $117,538, down about 5% from its recent peak. This pullback comes as miners and long-term Bitcoin holders begin to secure profits, raising questions about the immediate price direction.

Miner Activity Signals Possible Short-Term Correction

Recent research from CryptoQuant reveals a notable uptick in the Miners’ Position Index (MPI), which soared above 2.7. Historically, this index measures how much Bitcoin miners are moving their funds to cryptocurrency exchanges compared to the average over the previous year. When MPI rises, it typically indicates that miners are preparing to sell more coins to lock in gains, often signaling a potential short-term market correction.

Still, this level remains beneath the extremes witnessed during previous market tops, suggesting that while profit-taking is underway, it may not mark the end of the current bullish cycle. Analysts point out that such miner activity is common during bull markets, usually preceding brief sideways movements or modest pullbacks before the next upward surge.

Long-Term Investors Also Taking Profits

Additional on-chain analysis has identified an unusual wave of profit-taking from long-term Bitcoin holders. Around ten days ago, there was a marked increase in older coins being sold. Although this did not stall BTC’s rally to its highs, it highlights that some early investors are capitalizing on the recent price strength. Whether this represents a pivotal moment or just temporary consolidation remains uncertain.

Market Metrics & Technical Outlook Remain Positive

Despite minor selling pressure, Bitcoin is holding up well. Over the past 24 hours, BTC is up 0.3% and has gained 8% in the last week. However, trading volumes have slipped by nearly 10% to $63.9 billion, with a 14.76% drop in the futures market and a marginal 1% decline in open interest, reflecting a modest cooling in cryptocurrency derivatives trading.

From a technical perspective, Bitcoin maintains a strong uptrend, trading above key moving averages and staying within the favorable middle range of the Bollinger Bands. With a current Relative Strength Index (RSI) of 67.42, BTC has not yet reached overbought conditions, suggesting that there is room for further appreciation before any significant overheating.

Key Resistance and Support Levels to Watch

In the short term, traders should watch for resistance around the $121,000 to $123,000 range, while support levels appear at $111,000 and $102,000 respectively. A potential retest of these zones could offer a healthy reset for bullish momentum, paving the way for another rally if positive sentiment holds.

Long-Term Prospects for Bitcoin Remain Strong

Looking ahead, the fundamental outlook for Bitcoin remains robust. Macroeconomic factors continue to reinforce Bitcoin’s status as a key store of value, and there is no evidence of large-scale institutional sell-off. Moreover, current miner activity has not reached panic levels. For long-term investors, any near-term weakness could provide valuable buying opportunities rather than signaling a major reversal in trend. As the cryptocurrency market matures, Bitcoin’s appeal among both retail and institutional participants only appears to be strengthening.

Source: crypto

"I’m Zoya, and crypto is my playground. I dive deep into blockchain trends, DeFi, and how digital assets shape our future economy."

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