Bitcoin Surge Encounters Retail Retreat While Whales Ramp Up Investments
The July surge of Bitcoin seems to be losing momentum among retail investors, as selling activities soar across U.S., Korean, and Binance-based retail sectors, despite heavy accumulation by whales.
An analysis from CryptoQuant contributor Arab Chain dated July 22 reveals dwindling demand from traders in the U.S. and Korea. The Coinbase Premium Index, designed to monitor the price disparity between Coinbase and global exchanges, has remained stagnant or negative, even with Bitcoin’s (BTC) rise to an all-time high of $122,838 on July 14.
This suggests that U.S. investors are likely cashing out instead of buying. In a similar vein, the Korea Premium Index indicates that local traders are offloading Bitcoin at prices lower than global standards, reflecting weak demand and ongoing selling activity.
This trend at the regional level correlates with platform-specific behavior. Another examination by CryptoQuant contributor Amr Taha shows that Binance’s retail deposits skyrocketed from $12 billion to over $16 billion in a 30-day period, indicating that retail traders are adding Bitcoin and might be preparing to sell.
This follows a trend witnessed earlier this year when Bitcoin surged from $78,000 to $111,000. Retail investors exited during the upward movement and consequently missed out on further profits.
Additional confirmation comes from Binance’s net taker volume, which has dipped into negative territory. This indicates that sellers maintain dominance, either closing long positions or establishing new short ones, even while Bitcoin approaches its record highs.
As of this writing, Bitcoin is priced at $117,945, showing a decline of 0.2% over the previous day and 4% from its peak. Nevertheless, the cryptocurrency has risen by 14% in the past 30 days.
Despite the recent dip, Bitcoin continues to follow a confirmed upward trend on the daily chart. The price remains above the 21-day exponential moving average and the ascending trendline from mid-June.
The relative strength index sits close to neutral at 57, indicating potential for growth without the market becoming overheated. Support is identified around $115,000, while the crucial resistance levels of $120,000–$122,800 remain pivotal for any breakout attempts.
In an optimistic scenario, Bitcoin could consolidate above $117,000 before retesting and potentially exceeding its previous record high. A bearish trend would be indicated by a sustained drop below $113,500, which would open the path to $108,000 as the next significant support level.