Key Takeaways
- Bitcoin saw 80k dormant coins move at $108,000, triggering a spike in market speculation. With BTC revisiting its key resistance, fear and greed may be back in play. This could either be smart money repositioning, or the early signs of distribution.
Exactly a month ago, Bitcoin [BTC] sealed its highest monthly close at $110,247 – A level that quickly turned into strong resistance. Fast forward to July, however, and BTC is once again testing this key threshold.
And yet, the structure behind the move has shifted lately. Unlike the prior rally driven by four explosive green candles, this retest has been after a slow, methodical grind from the $98k “dip” over the past two weeks.
Thanks to the same, investor patience is now through the roof. In this climate, will FOMO ignite the next breakout, or will greed trigger yet another premature top?
Mind over market – Sentiment faces the $110k wall
According to Glassnode, on 04 July, around 80,000 BTC were moved on-chain at $108k by addresses dormant for five years.
Coincidence or not, this activity appeared to be in line with BTC’s realized profits spiking to a yearly high of $9.2 billion. And yet, despite the scale of this profit-taking, Bitcoin closed the day with a drop of just 1.41%.
Source: Glassnode
Such resilience isn’t random. Spot demand has been robust, with over $1.3 billion flowing into BTC ETFs in July alone – An influx that likely soaked up the sell-side pressure with ease.
And yet, the sentiment hasn’t overheated. Even during last month’s push to $110k, the Fear & Greed Index peaked at just 64, suggesting the rally lacked the emotional blow-off typical of market tops.
Still, BTC pulled back on the charts. Is smart money tactically offloading into strength, flipping the classic “buy fear, sell greed” playbook? If so, this could be less a breakout setup, and more a textbook liquidity trap unfolding at resistance.
Inside the strategic playbook of Bitcoin’s smart money
The latest 80k BTC move has fractured market consensus.
Some are interpreting it as a calculated smart money shakeout, injecting volatility near the resistance to trigger retail exits and reload at lower bids.
The data seemed to back this suspicion. During BTC’s last rejection at $110k, whale address counts turned negative, with the 30-day change dropping by 26 in just ten days. That drawdown synced perfectly with Bitcoin’s slide to $98k on the charts.
Source: Glassnode
What came next was classic strategic accumulation – Whales re-entered aggressively, driving the count back up to 2,008.
In previous cycles, that kind of accumulation has usually aligned with smart money buying fear and offloading into retail-driven euphoria, rather than into strength.
If this divergence persists, it may point to one more liquidity flush – A tactical shakeout before Bitcoin can mount a sustained breakout above the $110k-$111k resistance wall.
