Bitcoin News Today: Bitcoin Rises 1.8% as Traders Watch $116,000 Breakout

Bitcoin’s price surged past $116,000 on August 7, marking a significant short-term rebound amid ongoing consolidation between $110,000 and $116,000. According to HTX market data, the cryptocurrency was trading at $116,053, reflecting a 1.8% gain in the past 24 hours [1]. This level has become a critical psychological and technical resistance, with traders and analysts closely monitoring for a decisive breakout [6].

The recent price action follows a sharp decline from Bitcoin’s July peak of $123,000, after which the asset entered a low-liquidity “air gap” characterized by reduced trading volumes and cautious positioning from both retail and institutional investors. On August 4, Bitcoin briefly pushed past $115,000, driven by inflows into institutional ETFs and speculation surrounding potential Federal Reserve rate cuts. However, it quickly retreated to around $114,260, underscoring the market’s struggle to secure a lasting move above $116,000 [2].

Analysts from Bitfinex suggest that Bitcoin may remain range-bound unless a significant macroeconomic or market-moving event triggers renewed volatility. A successful break above $116,000 could reignite bullish momentum and indicate a resumption of the year’s upward trend. Conversely, a failure to break through could lead to further consolidation or even a retracement to lower levels [2].

Institutional activity has also played a notable role in shaping Bitcoin’s price dynamics. Entities such as Tether and Coinbase have reportedly been accumulating approximately 30,000 BTC during the consolidation phase. This accumulation suggests continued institutional confidence in Bitcoin’s long-term potential, despite short-term uncertainty [3].

Looking ahead, market participants are advised to closely monitor trading volume and on-chain metrics for signs of increased buying pressure at key levels. Analysts at investx.fr emphasize that a sustained move above $116,000 would be necessary to confirm a new bullish phase [6].

Broader macroeconomic factors, including the implementation of Trump-era tariffs and central bank policy decisions, may also influence Bitcoin’s trajectory. While not directly linked to the cryptocurrency market, these developments contribute to a climate of uncertainty that can affect risk-on assets [1].

As the market awaits a clear direction, the $116,000 level remains a focal point. The coming weeks are expected to provide more clarity on whether Bitcoin can overcome this key resistance and resume its upward trajectory or continue trading within the current range [6].

Source:

[1] Bitcoin Price Forecast: BTC consolidates as Trump tariffs go into effect - https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-btc-consolidates-as-trump-tariffs-go-into-effect-202508071001

[2] Coinbase premium just dropped a huge signal for Bitcoin's - https://finance.yahoo.com/news/coinbase-premium-just-dropped-huge-111636444.html

[3] Bitcoin News Today: Bitcoin Consolidates in $110k–$116k - https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-110k-116k-range-institutional-buyers-accumulate-30k-btc-2508/

[6] Bitcoin Needs to Break $116,000 to Reach New Heights - https://investx.fr/en/crypto-news/bitcoin-needs-to-break-116000-barrier-for-reaching-new-all-time-highs/