Bitcoin News Today: Bitcoin's $117K Support Strengthened as Buyers Absorb Nearly 100% of Supply in Range

Bitcoin’s recent on-chain activity underscores a significant shift in market dynamics as buyers consolidate positions above $100,000 while distribution slows below this threshold. Over 1.48 million BTC have changed hands in the past 30 days, with accumulation intensifying near $117,000–$118,000 and distribution concentrated between $85,000 and $95,000. This divergence highlights a structurally strong support zone forming at $117,000, where buyers have absorbed nearly 100% of the supply in that range, indicating a preference for holding Bitcoin rather than selling [1].

The $117,000–$118,000 level has emerged as a critical focal point for market sentiment. Analysis of cumulative supply changes reveals a sharp rise in accumulation above $100,000, with the pink line on supply change charts surging as prices approach this threshold. Meanwhile, distributed supply (blue line) has flattened, signaling buyer dominance in elevated price territory. Institutional analysts note that this level has transitioned from a psychological benchmark to a structurally significant support area, validated by a multi-year bullish megaphone breakout [2].

Technical patterns further reinforce the importance of $117,000. A symmetrical triangle between $115,724 and $122,077 has intensified focus on this level, with a potential breakout above $122,077 projecting a target of $140,000. Conversely, a breakdown below $117,000 risks a deeper correction to $100,000 or the Q1 2025 accumulation zone at $93,000 [2]. On the 4-hour chart, compressed trading ranges and increasing volume at key boundaries suggest an imminent directional move, with the $117,000 threshold acting as a psychological and structural fulcrum.

On-chain metrics add nuance to the narrative. The NVT (Network Value to Transaction Volume) Golden Cross has climbed to 1.98, nearing the historical “overheated” threshold of 2.2. While a high NVT typically signals overvaluation, the recent divergence—where Bitcoin’s price has risen despite declining NVT—suggests sustained on-chain activity underpins the rally. However, long-term holders net distributing and short-term holders net accumulating mirror late-stage bull market dynamics, raising questions about market sustainability if $117,000 fails [2].

Institutional demand remains a key driver. Major Bitcoin ETFs have recorded cumulative net inflows of $54.47 billion, with public companies like Strategy Inc. accumulating 248,000 BTC in July. This inflow contrasts with macroeconomic risks, such as delayed U.S. Federal Reserve policy decisions, which could pressure risk assets. A confirmed breakout above $122,077 may reignite bullish momentum, while a breakdown below $117,000 could force a retest of the $93,000 zone [2].

For traders, disciplined risk management is critical. Bullish strategies could involve scaling into positions near $117,000 with tight stop-losses below $115,000, while bearish bets require confirmation of a sustained close below this level. Hedging tools, such as put options for longs or call options for shorts, offer safeguards against volatility. Monitoring on-chain metrics like the NVT Golden Cross and holder activity will be essential for assessing structural strength [2].

Sources:

[1] [Bitcoin Accumulation Near $117K Highlights Emerging Support Zone Amid Recent Market Activity](https://coinmarketcap.com/community/articles/688286012eb2b360947518c3/)

[2] [Bitcoin's Critical $117000 Support and the Impending Bullish-Bearish Divergence](https://www.ainvest.com/news/bitcoin-critical-117-000-support-impending-bullish-bearish-divergence-2507/)