Bitcoin Price Faces Possible Dip as Whales Reach Exhaustion

Key Insights:

• Bitcoin is consolidating near $120K as whale activity and declining profits hint at a possible dip to $115K.
• On-chain data shows seller exhaustion may be nearing, but the market is currently fragile..
• Liquidity zones around $115K–$120K are important for BTC’s short-term direction.

After reaching an all-time high of $123,000, Bitcoin is now in a consolidation phase. While this might seem like just another routine pause, analysts believe that the market is entering a “healthy yet fragile balance.” 

Bitcoin is currently trading between $117,000 and $118,000, with traders watching the $115,000 mark as a downside target. 

Profitability Metrics Show Cooling Market Sentiment

According to Glassnode in a recent report, major profitability indicators are beginning to decline. For example, the percentage of supply in profit, as well as the unrealized profits, has slightly pulled back. 

Even though these metrics are still in what analysts call a “euphoric zone,” more and more signs point towards a possible correction or consolidation.

More importantly, the Realized Profit-to-Loss Ratio has dropped from 3.9 to 2.6, which is a move that indicates that more investors are starting to de-risk.

This metric measures the value of coins moved at a profit versus those moved at a loss. This means that the current reading of 2.6 means profits still outweigh losses, but not by the same margin as before.

Still, despite the pullback in profitability, there are currently no major indications that the bears are taking control. Instead, the market seems to be coiling and could be forming a new support base.

Is Seller Exhaustion Around the Corner?

The good news for bulls is that the market may be nearing a state of seller exhaustion. After such a strong run-up, a slowdown in selling pressure often opens the path for the next leg higher. 

However, that scenario depends heavily on whether BTC can maintain its current support levels.

Glassnode data shows that if profitability continues to fade, the market could fall into a more prolonged consolidation phase. The major challenge from here now is how to maintain bullish momentum in the face of weakening profit margins.

In other words, the market isn’t turning bearish. At the same time, it is no longer aggressively bullish either.

Traders Watch Bitcoin at $115K as Liquidity Cluster Builds

While the broader market cools, traders are zooming in on one specific price level: $115,000. 

According to analyst Daan Crypto Trades, exchange order books are showing strong liquidity buildup in this zone. This means that the longer Bitcoin trades sideways near $120K, the more trading positions get stacked on either side. 

Volume data also supports this theory. $118,000 has seen the highest trading activity in recent weeks and has been acting as a short-term midpoint that traders are watching.

If Bitcoin dips toward $115K, it could trigger stop-losses or liquidations and create short-term volatility. 

On the flip side, holding this level could reaffirm it as a strong base for the next upward move.

Bitcoin Dominance Drops as Ethereum and Altcoins Gain

Another major development is the sharp drop in Bitcoin’s market dominance. After holding near 64%, BTC.D has now dropped to 58%, in its second major decline in three months. 

This time, the shift is being led by Ethereum, which surged from $2,500 to $3,500 in just ten days. This kind of dominance shift often shows that investors are rotating into altcoins.

Overall, the immediate future for Bitcoin depends on how the market reacts to current support levels. If the $115K–$118K range holds and seller exhaustion sets in, Bitcoin could be setting the stage for another leg up. 

On the other hand, if profitability continues to weaken and liquidity sweeps take prices lower, we may be entering a longer period of sideways movement.