Bitcoin News Today: Bitcoin Consolidates Near $118K as Bullish Momentum Slows

Bitcoin’s recent record high of $123,000 in July has given way to a period of cooling momentum, according to key on-chain metrics and market analysis. As of early August, the cryptocurrency is trading near $118,000, slightly off its peak but still within a historically strong range. Analysts from CryptoQuant have noted that the Bull Score Index has dropped from 80 to 60, signaling a bullish cooldown phase, where optimism remains but buying pressure has weakened [1].

Seasonal trends appear to be playing a role in the slowdown, with summer often associated with reduced trading activity and profit-taking by investors. This trend is reflected in stablecoin liquidity metrics, which have stagnated and even turned negative in recent weeks. While USDT liquidity increased by $9.6 billion over the past 60 days, its growth rate has now fallen below average, indicating that fresh capital is entering the market at a much slower pace [1]. Similarly, the unrealized profit margin has declined to about 7.4%, the lowest in recent months, as traders lock in gains and reduce exposure to near-term volatility [1].

The Bull-Bear Market Cycle Indicator remains slightly positive, but it is approaching neutral territory, suggesting that the market is on the edge of a potential shift. If Bitcoin’s price continues to weaken, the indicator could move below zero, marking the first bearish phase since April 2023. However, analysts caution that this is more indicative of a short-term consolidation than a definitive bear market. The data supports a cautious interpretation: momentum is slowing, but the overall trend remains bullish [1].

Bitcoin’s mining network has also shown resilience, with the hashrate hitting all-time highs despite a recent pullback in price to around $112,000. This suggests that miners are maintaining their commitment to the network, a sign of underlying demand that remains strong even during periods of price volatility [2]. Technically, Bitcoin is currently consolidating around $117,000, a key psychological level. The absence of a decisive breakout or breakdown indicates a balanced market, with both bulls and bears carefully assessing the next move [5].

On the broader market, Bitcoin’s dominance has stabilized at around 52%, with altcoins continuing to underperform. Analysts have observed that altcoin seasons, typically characterized by strong relative performance of smaller cryptocurrencies, have yet to emerge despite Bitcoin’s rally. The last significant altcoin season occurred in early 2024, and no clear signs point to a new one forming [6]. This suggests that both institutional and retail investors are still prioritizing Bitcoin as the primary digital asset for exposure.

The cryptocurrency’s four-year price cycle remains a topic of debate. While historical patterns suggest recurring peaks every four years, recent market developments—including increased institutional adoption and evolving regulatory frameworks—are beginning to influence this rhythm. Market observers are closely watching to see whether these factors will delay the cycle or redefine it entirely [4].

In the short term, Bitcoin appears to be navigating a consolidation phase rather than entering a bearish reversal. On-chain data shows that new address growth remains robust, and open interest in Bitcoin futures has stabilized, indicating that both retail and institutional players are maintaining their positions [1]. Meanwhile, the broader macroeconomic environment continues to support Bitcoin’s long-term narrative. A weakening U.S. dollar, driven by the Federal Reserve’s monetary policy and global economic uncertainty, is seen by some analysts as a potential tailwind for Bitcoin. However, this remains a forecast rather than an established trend [7].

As the market digests recent price action and on-chain data, the coming weeks will be critical in determining whether Bitcoin will resume its upward trajectory or settle into a prolonged consolidation. For now, the data suggests a market in cautious balance, with no clear signs of a reversal.

Source:

[1] Bitcoin Holds Near All-Time High, No Overheating Signs (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-time-high-signs-overheating-2508/)

[2] Bitcoin Price Drops, But Miner Confidence Soars as Hashrate Hits All-Time High (https://thecurrencyanalytics.com/bitcoin/bitcoin-price-drops-but-miner-confidence-soars-as-hashrate-hits-all-time-high-189699)

[4] Bitcoin's Four-Year Rhythm Is Slipping (https://www.mitrade.com/au/insights/news/live-news/article-3-1025357-20250809)

[5] Bitcoin Settles Below $117,000 as Traders Await Breach of Pivotal Levels (https://www.economies.com/crypto/news/bitcoin-settles-below-$117,000-as-traders-await-breach-of-pivotal-levels-47063)

[6] Altcoins Still Lag Behind Bitcoin (https://www.mitrade.com/au/insights/news/live-news/article-3-1026464-20250810)

[7] US Dollar’s Fall Could Send Bitcoin to $150K (https://www.interactivecrypto.com/wall-streets-secret-bet-why-the-us-dollars-fall-could-send-bitcoin-to-150k)