Bitcoin continues to consolidate above the $116K level as bulls attempt to defend critical support following a pullback from the $123K all-time high. While the broader uptrend remains intact, recent price action reflects uncertainty and tightening range dynamics. With macroeconomic tensions rising and risk sentiment mixed, BTC ($116,902.00)’s next major move could be triggered by key technical levels.
Technical Analysis
Bitcoin’s daily structure shows a breakdown and pullback to the ascending channel that’s been respected for months. After the drop from $123K, and the midline of the channel, BTC has finally broken the channel to the downside and is consolidating below it. This represents a concerning development that might lead to deeper corrections.
The price currently attempts to hold above the 100-day moving average, which sits near the $110K support level. The RSI also rests around 51, signaling a neutral momentum state. However, if a bearish shift occurs following a rejection from the channel’s lower boundary, and the $110K level breaks down, the next high-confluence zone lies around the psychological $100K level. This zone also aligns with the key 200-day moving average.
The chart clearly shows a classic bullish continuation pattern where $BTC consolidates within tight ranges after each breakout.
Such tight consolidation structure signals strong accumulation and healthy correction before the next upward continuation. With the current range… pic.twitter.com/JVeQVdRHJn
— Elite Crypto (@TheEliteCrypto) July 24, 2025
The 4-hour chart shows BTC declining inside a descending channel since the price dropped from the $123K level. The cryptocurrency now tries to break the channel to the upside, having broken through the $116K short-term resistance. The price rebounds from the 50% area of the Fibonacci retracement tool, which adds to the probability of a bullish continuation beginning from this zone.
Moreover, the RSI shows a bullish shift in momentum as it has risen above the 50% level. As a result, if the price holds above the $116K level, it will likely break out of the descending channel and rally toward the $123K all-time high and beyond in the coming weeks.
Onchain Analysis
The Exchange Whale Ratio flashes a warning signal. It has been steadily climbing and now sits at its highest level since early 2023. Historically, such spikes, especially above 0.5, tend to precede either distribution events or significant profit-taking, as large holders increasingly dominate inflows to exchanges.
This rise, combined with the stalled momentum in price, suggests whales may be preparing to offload into strength. While it doesn’t guarantee a reversal, it typically marks local tops or slower price progress until new demand kicks in. Traders should watch closely for on-chain outflows and derivatives positioning to see if the current uptick in whale activity turns into real selling pressure.
Market Sentiment Outlook
The technical setup suggests Bitcoin remains positioned for potential upside momentum despite recent consolidation patterns. Key support levels and whale activity indicators will likely determine whether BTC can sustain its bullish trajectory toward new highs.
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