Bitcoin News Today: Bitcoin's Bullish Momentum Fades as Technical Indicators Signal Potential Drop to $114K–$115K Range

Bitcoin is showing signs of waning bullish momentum, with technical indicators and market dynamics suggesting a potential decline toward the $114,000–$115,000 range. A hidden bearish divergence in the Relative Strength Index (RSI) has emerged, where price forms higher highs while the RSI creates equal or lower highs. This pattern historically signals weakening momentum, often preceding corrective declines. A similar divergence in March 2024 preceded a 20% price drop, raising concerns that Bitcoin could face another short-term pullback [1].

The CME gap between $114,380 and $115,635 on the daily chart has become a focal point for traders. CME gaps occur when Bitcoin trades outside regular hours on the Chicago Mercantile Exchange, leaving untraded price ranges that often get “filled” in active sessions. Seven out of nine 2025 CME gaps have already been filled, amplifying the likelihood of Bitcoin revisiting this level to close the $114,000 bracket. Analysts caution that this gap could act as a “magnet,” pulling the price lower in the coming weeks [1].

Anonymous crypto analyst Gaah highlighted that the Index Bitcoin Cycle Indicator (IBCI) has entered a distribution zone, a historically significant area linked to market euphoria and interim tops. While the IBCI reading of 80%—below the 100% peak seen in past cycle tops—suggests a major end-of-cycle peak is unlikely, it still signals elevated corrective risk. Key metrics like the Puell Multiple and STH-SOPR remain below mid-levels, indicating that retail speculation and miner activity have not yet peaked. Gaah emphasized that the current distribution zone does not necessarily confirm a major top but underscores the potential for short-term volatility [1].

Bitcoin’s recent consolidation between $115,000 and $120,000 has intensified debates about its near-term direction. On-chain data reveals reduced active supply and hesitant selling from long-term holders (LTHs), as the CDD Ratio hits historic levels. This behavior suggests LTHs may be distributing positions, a common precursor to exhaustion in holding patterns. However, the absence of aggressive selling has led some to view the $115,000 retest as a consolidation phase rather than a bearish breakdown. Analysts at CoinDCX forecast that a bullish breakout above $122,000 with strong volume could drive the price toward $124,000–$130,000 by early August, though this scenario hinges on sustained buyer participation [2].

Intraday volatility has further complicated the outlook. A sharp drop to $117,634 on July 24 highlighted the fragility of Bitcoin’s price structure, with the $118,000 psychological threshold appearing to cap upward momentum. Market participants now closely monitor the $115,000–$118,000 range, where a sustained breakdown could trigger deeper corrections. Conversely, a robust rally above $122,000 may reignite bullish sentiment, though this remains contingent on macroeconomic conditions and ETF inflow dynamics [3].

The $115,000 level has become a critical technical and psychological anchor. Historical data shows that CME gaps in this range often get filled, and the IBCI’s distribution zone reinforces the likelihood of a near-term correction. While the long-term bull trend remains intact, traders are advised to prepare for heightened volatility as Bitcoin navigates this pivotal phase. The coming days will likely determine whether the price consolidates into a sustained rally or faces a more pronounced dip toward the $114K level [4].

Source:

[1] [Bitcoin is losing its bullish momentum: Is a drop to $115K next?](https://cointelegraph.com/news/bitcoin-is-losing-its-bullish-momentum-is-a-drop-to-dollar115k-next?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[2] [Bitcoin LTHs Start Distributing: CDD Ratio Hits Historic Level](https://www.mitrade.com/insights/news/live-news/article-3-985358-20250725)

[3] [Bitcoin Falls to $117K as ETF Inflows Stall, Trump Trade Deal](https://www.tradingnews.com/news/bitcoin-price-slides-below-118k-usd)

[4] [Bitcoin News Today: BTC consolidation near $115K-$120K signals $135K surge](https://www.ainvest.com/news/bitcoin-news-today-btc-consolidation-115k-120k-signals-135k-surge-2507/)