Bitcoin Stalls Near $119K as Sellers Step Back: What’s Next?

Bitcoin is displaying surprising strength this week, holding steady near $119,000 even as other major cryptocurrencies face deeper pullbacks. On the surface, the lack of movement might seem uneventful. 

But look closer, and a more complex picture emerges, one where sellers have exited, buyers are cautious, and the market is sitting quietly before its next decision.

Let’s unpack why the Bitcoin price has paused, despite a clear drop in selling pressure, and what could come next if conditions finally align.

Selling Pressure Has Faded, But Buyers Are Still Hesitant

One of the clearest indicators of reduced sell-side pressure is the sharp collapse in taker sell volume, a metric that tracks market sells, where traders aggressively hit the bid. 

On 25 July, taker sell volume was near $17.8 billion. Today, it has dropped by more than 90%, falling to just $1.2 billion. That sort of collapse doesn’t happen without a shift in sentiment.

When sellers retreat and prices remain stable, it often signals growing confidence or at least a temporary end to downward momentum. This aligns with another metric: exchange reserves. 

Currently, Bitcoin’s exchange balances are at a one-month low of 2.384 million BTC. That means fewer coins are sitting on exchanges, ready to be sold, a classic signal that holders are not preparing to exit the market.

Still, despite these supportive conditions, Bitcoin hasn’t launched into a rally. The price is trapped between support levels near $117,000 and resistance just above $120,000. 

Support zones have held up well, backed by key Fibonacci retracement levels, but the ceiling remains intact.

This kind of sideways structure often builds tension in the market. Fewer sellers, fewer available coins, and flat price action suggest a coiled spring waiting for a reason to jump. The absence of panic is a positive, but for now, the market is in limbo, waiting for a push.

Read also: What is the Current Bitcoin Dominance?

Repeated Rejections Reveal Where the Market Is Taking Profits

The reason Bitcoin hasn’t broken through resistance may lie in trader psychology. One helpful indicator is the Net Unrealized Profit/Loss (NUPL), which tracks how much unrealised profit exists in the system. High NUPL values often lead to profit-taking, as holders feel more tempted to lock in gains.

Over the past two weeks, Bitcoin has repeatedly approached the $119,000 to $120,000 zone. Each time, on 14, 17, 22, and 27 July, the price faltered. 

Each attempt was accompanied by a NUPL reading between 0.57 and 0.58. This repeated behaviour points to a shared psychological threshold where many traders are inclined to sell.

Since the most recent rejection, NUPL has declined slightly, while price has held firm. This may indicate that some profit-taking has already happened, and the pressure could now be easing. 

However, resistance at $120,000 has proven resilient. It’s not only a technical boundary (with the 0.786 Fibonacci level reinforcing it), but also a mental one, a line traders remember as the last point of failure.

At the same time, the market is showing signs of balance. Long and short liquidations are stacked evenly on both sides of the current range. 

If price pushes up, short positions could be forced to close, fuelling a move higher. But a slip below support would trigger long liquidations, pulling prices down. This balance is why Bitcoin remains tightly range-bound.

The conditions for a breakout are quietly building, but until this psychological wall is cleared, price action is likely to remain muted.

Read also: Why Bitcoin Is Heading to Its Final Rally

Market Structure Still Supports a Rally, But Needs a Trigger

While the rally has paused, nothing in the structure suggests that it’s over. Bitcoin’s funding rate remains slightly positive at +0.0104%, meaning traders are willing to pay a small fee to keep their long positions open. This reflects cautious bullish sentiment.

Open interest, the total number of active contracts in the futures market, is also stable. It hasn’t risen sharply, but it hasn’t dropped either. This suggests traders are still involved, watching closely for a signal, but not yet ready to make aggressive moves.

Another technical factor worth noting is the price pattern. On the daily chart, Bitcoin has stayed within a band from $114,728 to $120,666 for nearly two weeks. Each dip is becoming shallower, showing that buyers are stepping in earlier with more confidence.

If Bitcoin manages to close a daily candle above $120,700, momentum could shift quickly. The next potential target would be $124,300, followed by $127,300 if demand picks up. At that point, the path back to the previous all-time high of $139,000 would begin to reopen.

On the downside, a break below $117,000 would signal the opposite. It could drag Bitcoin toward $114,000, flipping the short-term structure from consolidation to reversal. That’s why this zone is so critical, not just for price, but for confidence.

As it stands, sellers are quiet, support is holding, and indicators are calm. The rally isn’t invalidated, it’s simply waiting.

Read also: Bitcoin Market Update: What's Happening to the Price?

Conclusion

Bitcoin is in a rare state of balance. On one hand, sellers have stepped aside, and supply on exchanges is dwindling. 

On the other, buyers remain cautious, unwilling to push past resistance without a clear trigger. This quiet tension is not weakness, it’s preparation. The moment a catalyst appears, Bitcoin could break from its range and resume its move upward.

For traders looking to navigate this delicate period safely, Bitrue offers a secure and beginner-friendly platform for trading Bitcoin and other digital assets. 

Whether you're managing spot trades or preparing for futures, Bitrue gives you the tools to stay in control during uncertain market moments.

Read also: Bitrue Earn Monday is Live Now

FAQ

Why hasn’t Bitcoin broken out despite low sell pressure?

The lack of selling pressure is supportive, but Bitcoin faces strong resistance near $120,000. This zone has repeatedly triggered profit-taking, making it difficult to push higher without a fresh catalyst.

What does a drop in taker sell volume mean?

Taker sell volume tracks market sells, where traders aggressively dump coins. A steep decline in this metric shows that fewer people are trying to exit, often indicating reduced fear and stabilising conditions.

What is the NUPL indicator and why is it important?

NUPL stands for Net Unrealized Profit/Loss. It measures how much profit holders are sitting on without selling. When it’s high, people tend to take profits. Repeated peaks near $120K have contributed to recent pullbacks.

What needs to happen for Bitcoin to start rallying?

Bitcoin needs to break and hold above the $120,700 resistance. That could trigger short liquidations and increase momentum, pushing the price toward $124,000 or higher.

Where can I trade Bitcoin safely?

You can use Bitrue, a secure and user-friendly crypto trading platform that offers both spot and futures trading options for Bitcoin, with built-in tools to help manage risk and navigate price swings.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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