Bitcoins (BTC) rally hit a pause as prices slipped 4% from all-time highs, in a typical pullback during a bull market.

Its on-chain signals are now flashing a possible market pivot as whales become active and dormant supply begins flowing again in July.

Dormant Coins Flow, Whales Strike

In its latest analysis, CryptoQuant revealed that Coin Days Destroyed (CDD) surged to 28 million this week, which indicates older Bitcoin previously held inactive is now being transferred. This pattern is historically tied to large holders repositioning near cycle midpoints or local tops.

In addition to this, Net Realized Profit and Loss (NRPL) also spiked above $4 billion in realized profits, the highest since early Q2. Such a trend reflected significant profit-taking by whales and recent buyers while Bitcoins price hovers around $117,000-$120,000. The price action amid heavy realized profits suggests resilient underlying demand or a delayed reaction.

Interestingly, this wave contrasts with late June, when NRPL data showed realized losses and modest profits. It hints at capitulation by late entrants while long-term holders accumulated quietly. The current environment flips this narrative: profits now dominate while older coins flow into the market, which aligns with Q3s institutional rebalancing phase. It also indicates that these movements are strategic rather than random.

Previously, simultaneous spikes in NRPL and CDD have preceded periods of volatility, including local tops, consolidations, or mid-cycle pauses, which means that whales and large players are coordinating activity. Whether this leads to further distribution or an extended rally will depend on follow-through in the coming weeks.

But for now, whales are active, profits are being locked in, and dormant supply is re-entering circulation. CryptoQuant stated that the market may stand at a hidden inflection point, layered beneath the surface of stable Bitcoin price action.

With whales active and dormant coins re-entering circulation, all eyes are on Bitcoins key levels. The recent rally to $124K and the subsequent correction have turned this level into a local top.

Key Levels

Bitcoin has pulled back after hitting $123,000, a level aligning with the +1 standard deviation of the Short-Term Holder (STH) Realized Price. As such, CryptoQuant stated that the resistance now sits at $124K and $136K, the latter representing the +1 STD of holders with coins less than one month old, a cohort often linked with overbought conditions when the crypto asset approaches this band.

On the downside, $113K, which aligns with the +0.5 STD above the STH Realized Price, is emerging as a support during consolidations. Meanwhile, $111K is the average cost basis for new entrants, thereby creating a psychological floor if it corrects further. The most critical level remains $101K, the baseline STH Realized Price, which historically signals medium-term bullish structure and strongholder conviction if the crypto remains above it.