Why Did Bitcoin’s Price Drop to $116,000 After Reaching an ATH Just a Few Days Ago?

Jakarta, Pintu News – Bitcoin ‘s 5% price drop after reaching a new high (ATH) indicates instability in the financial markets. The price movement down from $123k to $116k was caused by a change in investor sentiment.

While this minor post-milestone consolidation was expected, the drop was too deep, affecting the crypto market as a whole.

Factors causing Bitcoin (BTC) price decline

Investor sentiment and trading activity play a big role in the performance of digital assets. Bitcoin, as a major crypto asset, is no exception. When the crypto market experiences massive sell-offs and profit-taking, especially by whales, the price of Bitcoin is affected.

Sale by Bitcoin Whale

The Miner’s Position Index (MPI) indicator, which shows the ratio of miner outflows to the annual moving average, has crossed 2. This indicates that miners are starting to sell a large portion of their holdings, which is triggering a price drop. In addition, outflows from exchanges also show the same.

For example, a Bitcoin wallet from the Satoshi era just transferred 9,000 BTC on July 14, followed by another 7,843 BTC transfer on July 15, 2025. With nearly $2 billion in BTC being moved to Binance and Bybit, the selling pressure has been immense.

Read also: Forbes’ Top 5 Crazy Rich of the World – New in 2025

Macro and Liquidation Factors Suppressing BTC Price

The start of Crypto Week and other important events, such as the release of US CPI and PPI data, contributed to the sell-off. This saw Bitcoin price drop below the $118k support level and is now trading at around $116.4k, with a market capitalization of $2.31 trillion. In addition, the liquidation of almost $400 million of long positions occurred in a short period of time, around 4 hours.

Technical Factors & Changes in Investor Sentiment

Technically, Bitcoin’s rally has been going on for quite some time. BTC price is now in the overbought zone, while the MACD indicator is showing a bullish crossover but with slowing momentum.

Santiment also reported on July 14 that there is growing speculation about Bitcoin’s price drop, as many investors wait for an opportunity to buy at a lower price. In addition, there are signs of fatigue among traders, which is fueling profit-taking and triggering a price drop.

Also read: These Top 3 Crypto are Predicted to be Bullish in 2026 According to ChatGPT

Altcoin Rotation Putting Pressure on Bitcoin Price

With market conditions trending bullish, investor sentiment is now moving towards the greedy zone. The Altcoin Season Index has risen nearly 45% in a week, and speculation about Altseason is growing, causing capital to shift from BTC to other digital assets.

Another factor affecting Bitcoin price is Bitcoin’s declining dominance. Bitcoin’s dominance dropped from June’s high of 65.1% to 63.5%, showing a shift in trend.

However, a true Altcoin season is still a long way off, although some experts like Arthur Hayes are calling it a mini-season. While this factor is not enough to trigger a full-blown Altcoin season, it is enough to divert capital from BTC to other assets, contributing to Bitcoin’s price decline.

Overall, Bitcoin’s price drop was affected by whale selling and liquidation of leveraged positions. However, some analysts like Crypto Express argue that this is just a pullback to fill the CME gap between $115,635 and $114,380 before the next possible big rally.

That’s the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. Here’s Why Bitcoin Price is Going Down. Accessed July 16, 2025
• Featured Image: Generated by AI