Bitcoin (BTC) has entered its fourth consecutive month of gains. However, it just ended the first red weekly candle of July.
While many analysts believe the bullrun may not be over yet, some concerning signals have begun to emerge, hinting at a possible price correction or consolidation.
After Four Months of Gains, Is Bitcoin Due for a Breather?
These warning signs don’t necessarily mean Bitcoin will reverse, but they serve as early indicators that demand attention before stronger moves or major volatility occur.
1. Bitcoin Whale-to-Exchange Flow Spikes
First, Bitcoin Whale-to-Exchange Flow data shows a significant increase in July. This metric reflects the volume of BTC large holders (whales) send to exchanges, usually implying an intention to sell.
According to analyst Darkfost, in the last two market peaks, whale capital inflows exceeded $75 billion, marking the beginning of a correction or consolidation phase. Between July 14 and July 18, 2025, the figure has already reached $45 billion. This sharp rise indicates increased activity from large investors.
“[This whale activity] should be closely monitored, since whales can exert significant selling pressure, just as they did during the last two tops,” Darkfost said.
Darkfost’s view aligns with recent on-chain observations from Lookonchain. Today, Lookonchain reported that a savvy Bitcoin whale sent 400 BTC (worth $47.1 million) to Binance to take profits, with total realized gains reaching $91.5 million.
2. Bitcoin Coin Days Destroyed (CDD) Hits Yearly High
Beyond whale flows, on-chain data shows another signal: Bitcoin’s Coin Days Destroyed (CDD) in July reached a one-year high.
CDD measures how long coins were held before being moved. It reflects the sentiment and behavior of long-term holders. A high CDD value suggests long-term holders are moving their coins and are likely to sell them.
According to CryptoQuant, the 30-day average CDD in July surpassed 31 million, the highest since April 2024. A previous report from BeInCrypto noted that a spike in this metric often precedes major market corrections. However, on the positive side, it can also be seen as a redistribution to new investors.
3. Altcoin-Bitcoin Correlation Turns Negative
Finally, changes in the correlation between altcoins and Bitcoin have raised further concern.
According to Alphractal, the Altcoin-Bitcoin Correlation Heatmap recently dropped below zero. This shift means that altcoins have outperformed Bitcoin in recent days.
However, historical data shows that a low correlation between Bitcoin and altcoins is often a red flag.
Since the start of 2025, this indicator has turned negative thrice. The first was in January, followed by a drop in Bitcoin’s price from $110,000 to $74,900. The second time was in May, when BTC fell from $112,000 to $98,500. Now, we are seeing the third occurrence.
“Historically, low correlation is a red flag. It often precedes periods of high volatility and mass liquidations — whether from shorts or longs,” Alphractal warned.
A recent report from BeInCrypto also highlighted another concerning signal. The Coinbase Premium has decoupled from the Kimchi Premium. This disconnection suggests an uneven bullrun across global regions, primarily driven by strong institutional demand in the US.
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