Bitcoin News Today: Bitcoin Bounces 2.0% as Bulls Defend Key Support Amid Top 7% Bull Cycle Sell-Off

Bitcoin faced one of the most aggressive selling periods in its current bull cycle during late July 2025, with price action reflecting heightened volatility and intense market scrutiny. The cryptocurrency briefly dipped to a seven-day low of $114,700 before stabilizing in a consolidation range above key support levels. Despite lingering below the psychological $120,000 threshold, Bitcoin’s resilience has sparked debate over whether the bears are gaining momentum or if the bulls will reignite a push toward record highs [1].

CryptoQuant analyst Axel Adler highlighted that the recent week ranks among the top 7% of the most extreme selling events in this bull cycle, with only 12 weeks exhibiting equal or greater pressure [1]. This underscores a critical juncture for the market, where profit-taking has intensified but failed to trigger a full breakdown in price. By the end of the week, Bitcoin rebounded to $117,000, signaling bullish strength amid aggressive distribution. The Index Bitcoin Cycle Indicator corroborates this, identifying the current correction as the third major pullback in the cycle, a pattern consistent with historical volatility [4].

Technical analysis reveals Bitcoin locked within a defined consolidation range between $115,724 and $122,077 on the 4-hour chart. Traders observed a retest of the lower boundary, which bulls defended with renewed buying interest. The price’s proximity to the 100-period simple moving average ($117,822) further emphasizes the critical nature of this level. Analysts stress that breaking above $118,000 could set the stage for a test of the upper range resistance at $122,077, potentially paving the way for new all-time highs [1].

The bearish week also coincided with shifting dynamics in the cryptocurrency market. Bitcoin’s dominance has shown signs of waning relative to altcoins like Ethereum, raising speculation about the onset of an “altseason”—a period where capital shifts to alternative cryptocurrencies. This trend, if sustained, could drive broader gains across the sector [1]. Meanwhile, the Bonk Fear and Greed Index reported heightened volatility, reflecting investor anxiety as Bitcoin bulls repeatedly failed to breach $110,000 [8].

Market participants are now closely monitoring futures activity, where hedging strategies have intensified amid uncertainty. Long and short positions are being rebalanced as traders prepare for either a deeper correction or a breakout [6]. While short-term challenges persist, historical context suggests bull markets often outlast bearish corrections. For example, the S&P 500’s longest bear market pales in duration compared to average bull cycles, offering a potential parallel for Bitcoin’s trajectory [3]. Analysts caution, however, that cryptocurrency’s unique regulatory environment and market structure introduce variables that complicate precise timing of reversals.

The current phase highlights the cyclical nature of Bitcoin’s price action, with the Index Bitcoin Cycle Indicator serving as a tool to contextualize these movements rather than predict them [4]. As the market consolidates, the balance between institutional confidence and retail caution will likely shape the next major move. For now, Bitcoin’s ability to hold key support and attract buyers during dips suggests its bullish momentum remains intact, pending a decisive breakout above critical resistance [1].

Source: [1] [Bitcoin Endures One Of The Most Intense Bear Weeks Of This Bull Cycle – Details] [https://www.newsbtc.com/bitcoin-news/bitcoin-endures-one-of-the-most-intense-bear-weeks-of-this-bull-cycle-details/]

[3] [We've Witnessed U.S. Money Supply Make History on Both ...] [https://www.aol.com/weve-witnessed-u-money-supply-070600884.html]

[4] [Real-Time Crypto News, Latest Cryptocurrency Updates ...] [https://www.coinglass.com/news]

[6] [Today's Crypto and Bitcoin News] [https://www.kucoin.com/news/category/bitcoin]

[8] [Bonk Fear and Greed Index | Multiple Timeframes] [https://cfgi.io/bonk-fear-greed-index/]