Bitcoin News Today: Bitcoin Rebounds to $117,000 Amid Mixed Exchange Flows as 6.2% Dip From July High Triggers Volatile Market Signals

Bitcoin’s price has rebounded to $117,000 amid significant selling pressure during the current bull cycle, reflecting a tug-of-war between retail and institutional market dynamics. The cryptocurrency remains below its July peak of $123,000 but has found temporary support near the $117,000 level, sparking debates about market consolidation or repositioning. Exchange activity highlights divergent strategies: Binance has seen surging inflows to short-term holder (STH) accounts, with the STH inflow ratio exceeding the 0.4 threshold—a historically bearish indicator tied to retail selling pressure [2]. Meanwhile, Kraken has recorded large whale-driven outflows, including a 9,600 BTC transfer on July 22, which analysts interpret as long-term accumulation by institutional or high-net-worth actors [3]. These contrasting movements underscore fragmented sentiment, where short-term caution clashes with strategic positioning.

Binance’s reserve metrics add nuance to the narrative. The exchange’s unrealized profit on Bitcoin reserves has reached a record high of 60,000 BTC, despite a 9.2% decline in total holdings since September 2024 [4]. This surge in unrealized gains suggests appreciation of remaining holdings, bolstering Binance’s balance sheet even as outflows persist. Approximately 16,000 BTC is still locked in custodial wallets for the BTCB token on the BNB Chain. Analysts attribute the declining reserves to a growing preference for decentralized custody, signaling heightened trust in private wallet storage.

The broader market environment remains volatile, with over $500 million in leveraged liquidations reported recently [5]. Bitcoin’s 6.2% dip from its July high coincided with a record $44.5 billion in open interest, reflecting amplified speculative activity [1]. On-chain indicators, including the Bitcoin Fundamental Index, show resilience, but overbought RSI readings and resistance at $120,000 suggest a natural pause in the uptrend. Analysts caution that leveraged positions on both long and short sides remain fragile, increasing the risk of further corrections if margin calls are triggered by price shifts [6].

Macro trends and retail behavior may shape near-term direction. Traders are pricing in a 56% probability of a September Federal Reserve rate cut, according to analyst forecasts [14], which could influence Bitcoin’s trajectory. For now, the cryptocurrency is expected to trade within a $117,000–$120,000 range, with bulls targeting a breakout and bears monitoring support levels. The altcoin market has mirrored Bitcoin’s stagnation, with XRP and Solana experiencing sharper declines as risk-off sentiment persists [13].

Market psychology remains mixed. The crypto Fear and Greed Index stands at 74, reflecting lingering optimism despite the pullback [15]. Analysts are divided on the short-term outlook: some view the consolidation as a healthy correction, while others warn of potential retracements to $113,000. Notably, the absence of major cycle-top indicators like Pi Cycle Top or MVRV thresholds suggests the current phase remains part of a broader uptrend [9].

As the market navigates this transitional phase, the balance between retail sell-offs and institutional accumulation will likely determine Bitcoin’s next move. The $117,000 level appears to offer temporary support, but sustained buying pressure is critical to retesting key resistance zones. For now, the focus remains on balancing caution with opportunistic positioning in a market defined by its inherent volatility.

Source: [1] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[2] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[3] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[4] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[5] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[6] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[9] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[13] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[14] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)

[15] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals](https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/)