Bitcoin has retraced slightly after hitting a new all-time high near $123,000 as miners appear to be locking in profits.
Bitcoin (BTC) has dropped roughly 5% from its most recent peak and is trading at about $117,538 as of press time. Although there is still some momentum overall, there are signs of short-term pressure beginning to show, especially from miners and long-term holders.
According to a July 16 analysis by CryptoQuant contributor Avocado_onchain, the Miners’ Position Index has risen above 2.7. This shows that miners are transferring more BTC to exchanges compared to their one-year average. In the past, such activity often signaled a short-term correction, as some miners take profit after strong price gains.
This MPI level, though, is still far below the extremes seen at previous market peaks. According to the analyst, this movement might follow a pattern that is frequently observed during bull cycles, which consists of a brief sideways phase or pullback followed by further upward movement.
Another July 16 report by CryptoQuant contributer Onchain School highlighted an unusual spike in profit-taking from long-term holders about ten days ago. While this didn’t stop the price from pushing higher, it shows that some older coins are moving again, usually a sign that early investors are realizing gains. Whether this marks a turning point or just a pause is still unclear.
Bitcoin is up 0.3% over the last day 8% over the last week. Trading volume fell 9.7% to $63.9 billion in the last day. With futures volume down 14.76% and open interest down just 1%, derivatives data also shows declining interest.
On the technical side, Bitcoin continues to trade in a strong upward trend. The price is still above important moving averages and the middle band of the Bollinger Bands. The relative strength index is at 67.42, just below overbought levels, indicating that there may be space for upward movement without the market becoming overheated.
In the short term, Bitcoin might encounter resistance close to the $121,000–$123,000 mark. Support is located close to $111,000 and then $102,000 if the decline persists. Before a new leg up, a retest of these levels might help reset momentum.
The outlook is still favorable in the long run. The macro environment still supports Bitcoin as a store of value, there are no significant indications that institutional holders are pulling out, and miner activity hasn’t escalated to a panic level. Any decline could be a fresh entry point rather than a long-term reversal if the current sentiment continues.