Bitcoin News Today: Bitcoin Below $116,000 Triggers $585M Liquidations as $113,000 Support Tested

Bitcoin faces mounting pressure as it navigates a volatile market phase, with conflicting signals from technical indicators and analyst forecasts complicating predictions about its next move. The cryptocurrency fell below $116,000 on July 19, triggering over $585 million in long position liquidations, including $140 million in BTC-related trades, according to CoinGlass data [1]. This decline follows a sharp correction from its July 14 all-time high of $123,100, attributed by traders to excessive leverage and speculative positioning. Crypto trader Ash Crypto noted that latecomers to the bullish rally were disproportionately affected in the market’s “leverage flush,” exacerbating the downturn [1].

Market expert Captain Faibik has warned of a potential bearish PO3 model forming, which could mislead investors with false bullish signals. He emphasized the critical importance of maintaining the $113,000 support level, stating that a break below this threshold could test the psychological $100,000 barrier and intensify selling pressure [1]. Recent data shows large-scale BTC sales, such as Galaxy Digital’s $1.18 billion transaction, have had immediate and pronounced effects on Bitcoin’s price. This activity, coupled with a $370 million USDT withdrawal, has introduced downward momentum, particularly during low-volume periods when liquidity is tighter [1].

Whale activity remains a key driver of short-term volatility. Galaxy Digital’s sale caused a 3% price drop within an hour, accompanied by the liquidation of $144 million in long positions. With 24-hour trading volume surging 23% to $87.46 billion, driven by profit-taking among large holders, the risk of a “late buyer trap” for new investors has grown. Faibik stressed the need for patience, stating, “I will not open a position without seeing a clear daily close.” [1]

Analysts remain divided on Bitcoin’s trajectory. Edul Patel of Mudrex highlighted a consolidation phase between $113,000 and $115,000 as a potential short-term support zone, though a drop below $116,000 could trigger further weakness [4]. Conversely, CCN’s wave count model suggests a major correction might not materialize until $164,000, with a cycle peak projected near $237,200 [2]. Meanwhile, Bitfinex analysts targeted $136,000 for Bitcoin if the uptrend resumes, while Michael Novogratz of Galaxy Digital predicted Ethereum could reach $4,000 [1].

Market sentiment reflects cautious optimism despite the turbulence. The Crypto Fear & Greed Index recorded a “Greed” score of 70 on July 19, indicating lingering bullish sentiment [1]. However, the liquidation of 213,729 traders during the selloff underscores the fragility of the current rally. BraveNewCoin analysts noted that ETF momentum and consolidation strength could still propel Bitcoin toward $200,000 [8], though such forecasts depend on sustained macroeconomic stability.

The immediate risk lies in liquidity dynamics. A rebound to $119,500 could expose $3.07 billion in short positions to liquidation risks [1], while a breakdown below $116,000 may deepen the correction. Traders are closely monitoring key levels and macroeconomic signals to determine whether this is a temporary setback or a precursor to a broader bearish phase.

Sources:

[1] Cointelegraph, [https://cointelegraph.com/news/crypto-longs-liquidated-market-downturn-bitcoin-price-decline](https://cointelegraph.com/news/crypto-longs-liquidated-market-downturn-bitcoin-price-decline)

[2] CCN.com, [https://www.ccn.com/analysis/crypto/bitcoin-btc-price-is-down-strong-recovery-imminent/](https://www.ccn.com/analysis/crypto/bitcoin-btc-price-is-down-strong-recovery-imminent/)

[4] The Economic Times, [https://m.economictimes.com/markets/cryptocurrency/crypto-news/crypto-price-today-bitcoin-slips-below-116000-amid-liquidations-solana-xrp-fall-up-to-5/articleshow/122902943.cms](https://m.economictimes.com/markets/cryptocurrency/crypto-news/crypto-price-today-bitcoin-slips-below-116000-amid-liquidations-solana-xrp-fall-up-to-5/articleshow/122902943.cms)

[8] BraveNewCoin, [https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-eyes-200k-as-correction-sets-the-stage-for-next-breakout](https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-eyes-200k-as-correction-sets-the-stage-for-next-breakout)