Bitcoin
Bitcoin Hits Record High of $111K Before Dipping, Bullish Structure Signals Push Toward $125K
Bitcoin (BTC) surged to a new all-time high of $111,000, marking a historic peak before retracing to a key support level of around $106K. Despite this correction, analysts maintain a bullish outlook, with technical indicators suggesting a potential push toward the $125,400 resistance zone.
BTC Pulls Back After Record High
The rally to $111K came amid broader market optimism and strong institutional interest. However, following the milestone, Bitcoin experienced a healthy pullback. This correction has brought the price down to a significant support zone at $109,590, at the time of writing, a level that has historically served as a pivot during both bullish and bearish phases.
Technical Analysis: Support and Resistance Levels
The recent dip in BTC’s price aligns with a high-timeframe support zone at $106,133. Historically, this level has acted as a significant inflection point, often leading to price consolidations or reversals. The current price action suggests a healthy retracement within a broader bullish trend.
BTC continues to trade within a well-defined upward channel. Previous movements within this channel have respected both upper and lower boundaries, indicating a potential move back toward the upper boundary at $125,400.
Market Structure and Momentum
Despite the short-term decline, BTC’s market structure remains intact. The most recent swing low has not been breached, and higher lows are still being printed on higher timeframes.
Institutional Confidence Builds Momentum
What makes this rally even more notable is the continued confidence from institutional investors. Billionaire Michael Novogratz, CEO of Galaxy Investment Partners, remains optimistic, projecting a near-term BTC target between $130,000 and $150,000.
Meanwhile, BlackRock has ramped up its BTC exposure. The asset management giant recently added 5,613 BTC to its iShares Bitcoin Trust, an investment worth over $530 million. BlackRock’s total BTC holdings now exceed 567,000 coins, valued at more than $63 billion.
However, with BTC now above six figures, entry for everyday investors is becoming increasingly expensive. This has led to a surge of interest in alternative tokens that offer Bitcoin-linked exposure at lower price points.
A Bitcoin wallet long dormant for 12.4 years was reactivated on August 1, 2025, moving 306 BTC, now valued at approximately $35 million, according to Whale Alert. The transfer stands out as one of the more notable reawakenings from pre‑2013 holdings, capturing attention across the crypto community.
From Dormancy to Activity
Purchased around 2013 at a modest price, the 306 BTC accrued substantial gains—now worth nearly 1,500 times the original cost. While the identity of the owner remains unknown, the move is reminiscent of other “Bitcoin OG” awakenings, which occasionally trigger sharp market reactions. Analysts say such transfers are closely watched for signs of potential sell-offs.
Market Ripples and Structural Patterns
Although the reactivation has generated noise, there’s no evidence yet of funds being sent to public exchanges. Similar moves, including a 343 BTC shift to Kraken from another 12-year dormant address, often precede stealth declines or profit-taking among early holders.
While large, long-dormant transfers typically sow sentiment-related volatility, these holders frequently execute over-the-counter (OTC) trades to avoid impacting market prices.
Why This Matters
Early Bitcoin adopters hold unique psychological and on-chain weight. Movements from long-unused addresses, sometimes dubbed “sleeping whales” can signal shifts in conviction or asset reallocation strategies. As Bitcoin trades near record highs, even small percentage swings in supply on the move can influence sentiment, especially among traders closely watching old‑coin behavior.
What to Watch
- Exchange flows: Any portion of this BTC entering exchanges could hint at forthcoming selling pressure.
- Market response: Technical levels around $113K to $115K may be tested as liquidity adjusts.
- Further reactivations: A trend of long-dormant wallets waking up may signal broader profit-taking or older holders rebalancing.
Conclusion
The reactivation of this 306 BTC address marks another chapter in the evolving story of Bitcoin’s early adopters. While the intent behind the transfer isn’t yet clear, it adds to a recent pattern of aging coins stirring to life—underlining how legacy holders still shape sentiment even as the market matures.
Also Read: Bitcoin Eyes Rebound as Fear & Greed Index Holds in Greed Zone
Bitcoin supremacy has dropped over 5.87% over the past month from 66% to 61.37% as of July 31, 2025. Meanwhile, altcoins like Ethereum, IKA, and Pump.fun are witnessing significant price rallies, hinting of rotating capital into altcoins.
What Happened?
According to recent Trading View data, BTC collapsed from nearly 66% down to 61.37% in just a month. That marks a 5.87% decline in dominance and 5.21% over the past three months.
At the same time, Bitcoin’s price hiked from about $111K to $122K, hitting new all-time highs, yet its dominance fell as altcoins outperformed.
How Are Altcoins Reacting?
Ethereum marked its 10‑year anniversary on July 30, surged over 170%, and now sits roughly 20% below its all‑time high of $4,878.
IKA surged ~25% in 24 hours, breaking all-time highs (≈$0.0363). Pump.fun has also gained ~27.6% in a single day, driven by strong momentum after its July ICO launch.
Why It Matters
- Bitcoin dominance often signals a clear declining shift toward altcoin season when capital rotates into smaller-cap, higher-beta tokens.
- Even though Bitcoin is going up, investors are looking at other cryptocurrencies that might grow even more especially while Bitcoin is already close to its highest price ever.
What’s Next?
If Bitcoin dominance drops below the 60% threshold, it could signal the start of a major rotation into altcoins, potentially triggering broad-based outperformance across the sector. Traders are closely watching the price action of Ethereum, IKA, and Pump.fun, as well as gains among medium- and small-cap tokens, which often lead during altcoin cycles. Analysts also point to the Altcoin Season Index climbing above 50% as a key indicator that altcoins may soon take center stage in market momentum. As dominance shifts, the next leg of the bull market could be driven by assets beyond Bitcoin.
Also Read: Bitcoin Eyes Rebound as Fear & Greed Index Holds in Greed Zone
Bitcoin has been navigating a tight trading range since mid-July. Still, analysts believe a rebound could be underway, particularly as the Crypto Fear & Greed Index remains entrenched in bullish “Greed” territory.
Market Sentiment Still Optimistic
The Fear & Greed Index currently sits at 63, signaling continued investor confidence despite a mild pullback in altcoin prices. This marks a step down from earlier peaks near 71 but remains solidly in the Greed zone. Historically, sentiment in this range tends to support further upside moves in Bitcoin.
Technical Setup Points Toward Breakout
Bitcoin formed a bullish pennant pattern after pulling back slightly from its all-time high near $123,200 reached earlier this month. Volatility has contracted, indicated by narrowing Bollinger Bands, setting up a potential price squeeze. A confirmed breakout from this setup could target levels near $143,550, based on pattern measurements.
ETF Flows and Institutional Activity
Despite the technical upside, spot ETF flows remain cautious. Bitcoin ETFs have seen back-to-back weekly outflows of approximately $157M and $128M, as investors take profits from recent gains. Concurrently, institutional accumulation continues, supporting price resilience.
With market momentum shifting back toward optimism and technical indicators aligning, Bitcoin may be poised for its next leg upward. A daily close above the pennant’s upper trendline, coupled with increasing volume, would strongly support a bullish scenario.
Final Takeaway
Bitcoin remains tightly range-bound as sentiment holds firm in the Greed zone. Combined with bullish chart patterns and institutional support, the stage is set for a potential breakout. Traders should monitor volume expansion and a daily close above the pennant for confirmation.
Also Read: PayPal Launches “Pay with Crypto,” Supports Over 100 Cryptocurrencies for U.S. Merchants
