Bitcoin Price Analysis: BTC Dips Below $118,000 As Selling Pressure Returns
Bitcoin (BTC) has registered a notable decline over the past 24 hours, with the flagship cryptocurrency down nearly 1%. BTC fell below $118,000 earlier today as selling pressure returned, and is trading around $117,700.
Despite sluggish price action since Tuesday, analysts believe BTC’s rally is far from over, stating that the price could rise another 25% before hitting resistance.
BlackRock Ramps Up Bitcoin Acquisition
BlackRock, the world’s largest asset manager, is ramping up its Bitcoin purchases. According to data from Arkham Intelligence, the asset manager has purchased 3,478 BTC for around $416 million. BlackRock’s last Bitcoin purchase was last week when it purchased $216 million worth of the asset. The latest purchase takes BlackRock’s Bitcoin portfolio to 716,500 BTC, worth over $85 billion, making it one of the largest holders of the asset.
The asset manager’s purchase comes as demand for its IBIT ETF skyrockets. IBIT is leading US-based spot Bitcoin ETFs in daily inflows. According to the latest market data, Bitcoin ETFs recorded $799 million in inflows over the past 24 hours.
Matador Technologies Plans 6,000 BTC Purchase
Bitcoin solutions firm Matador Technologies plans to purchase 6,000 BTC by 2027, significantly accelerating its Bitcoin buying strategy. The firm announced that it plans to buy 1,000 BTC on or before 2026, as it plans to accumulate 6,000 BTC by 2027. Matador currently holds 77.4 BTC worth around $9 million. The firm’s long-term goal is to hold 1% of Bitcoin’s total supply and become one of the top 20 holders of the asset. Deven Soni, CEO of Matador Technologies, stated,
“Our business is structured around Bitcoin as a core asset.”
Soni added that the firm’s new approach extends beyond treasury management and also includes infrastructure and operational components. Matador had filed a 900 million Canadian dollar shelf prospectus to provide financing flexibility over the next 25 months. The firm plans to use various funding strategies, including at-the-market equity offerings, convertible financings, asset divestitures, Bitcoin-backed credit facilities, and strategic acquisitions or partnerships.
Volcon Raises $500 Million To Fund Bitcoin Treasury Strategy
Volcon Inc. has entered into a securities purchase agreement for a private placement expected to generate over $500 million in gross proceeds. The firm will issue 50,142,851 shares of its common stock at $10 per share to accredited and institutional investors. The company stated that it plans to use 95% of the gross proceeds to acquire Bitcoin as its primary treasury reserve asset. Empery Asset Management was the lead investor in the offering. Other participants included crypto venture capital firms like FalconX, Pantera, RK Capital, Borderless, and Relayer Capital.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a sharp decline during the ongoing session, falling to a low of $117,389 as selling pressure intensified. However, the flagship cryptocurrency has rebounded to reclaim $118,000 and move to its current level of $118,777.
While much of Bitcoin’s latest rally has been fueled by institutional demand, new data suggests that retail investors are stepping back in after an extended pause. According to a report by Glassnode, Bitcoin held by first-time buyers rose nearly 3% over the past two weeks, rising from 4.77 million BTC to 4.91 million BTC, indicating that fresh capital is entering the market.
In previous bullish cycles, the rally was generally fueled by retail investors. However, the current cycle was marked by institutional and ETF demand, which helped Bitcoin surge past key levels as smaller investors remained on the sidelines. Glassnode’s report suggests retail investors may be re-entering the market. An analysis of trading activity on Binance shows a jump in retail-sized deposits while whale inflows registered a notable decline. This means a significant portion of recent momentum is being driven by retail activity.
CryptoQuant analysts have also stated that the Bitcoin market is not overheated, and that the flagship cryptocurrency has room to push higher. CryptoQuant analyst Axel Adler Jr. believes BTC is yet to hit its peak, sharing a chart showing the absence of a peak signal, typically occurring around major market tops. Adler stated,
“It appears when the combined normalized market to realized price index and 30-day/365-day value days destroyed ratio score reaches or exceeds 1. The Peak Signal only appears at major market tops, and it hasn’t shown up this time, suggesting we’re not at a peak yet.”
Crypto Dan, another CryptoQuant analyst, highlighted the realized Cap-UTXO Age Bands, a metric that shows the distribution of the realized cap of a specified age cohort. According to Crypto Dan, the metric suggests that BTC still hasn’t reached an overheated state. The analyst stated,
“Despite the price rising even higher, the fact that overheating has significantly decreased compared to previous short-term peaks suggests that Bitcoin could continue to break all-time highs and rise significantly in the second half of 2025, leaving strong potential for growth.”
BTC traded in the red on Friday (July 4), dropping 1.41% to $108,097. The price recovered over the weekend, rising 0.19% on Saturday and 0.86% on Sunday to settle at $109,231. BTC was back in the red on Monday, dropping almost 1% to $108,273. It recovered the following day, rising 0.62% to $108,942. Buyers retained control on Wednesday as the price rose over 2% to cross $111,000 and settle at $111,255. Bullish sentiment intensified on Thursday as BTC rallied, increasing 3.51% and settling at $115,160. The price continued pushing higher on Friday, rising 1.50% to $116,885.
Source: TradingView
Despite the positive sentiment, BTC registered a marginal decline on Saturday, dropping 0.23% to $116,616. It recovered on Sunday, rising nearly 2% to cross $118,000 and settle at $118,624. BTC raced to a new all-time high on Monday, surging past $123,000 to $123,091. However, it lost momentum after reaching this level and settled at $119,714, ultimately rising 0.92%. Selling pressure returned on Tuesday as traders locked in their profits. As a result, BTC plunged to a low of $115,701 before settling at $117,682. The price recovered on Wednesday, rising almost 1% and settling at $118,641. BTC fell to an intraday low of $117,389 during the current session. However, it recovered to reclaim $118,000 and move to its current level of 115,506.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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