Bitcoin News Today: Bitcoin Consolidates Near $117K as Bullish Momentum Slows

Bitcoin is entering a consolidation phase following its peak of $123,000 in July 2025, according to the latest Institutional Insights report from CryptoQuant. The market, once marked by intense bullish momentum, is now showing signs of exhaustion, with key on-chain metrics indicating a slowdown in activity. The Bull Score Index has declined from 80 to 60, signaling a moderation in buying pressure while remaining within bullish territory [1]. This shift suggests that traders are becoming more cautious, locking in profits and reducing exposure amid short-term volatility [1].

One of the most notable indicators of the market's cooling is the sharp slowdown in stablecoin liquidity growth. The expansion of USDT, a key gauge of fresh capital inflow, has dropped significantly, with liquidity growth limited to $9.6 billion over the past 60 days. Meanwhile, the on-chain trader profit margin indicator has turned red, reflecting widespread profit-taking and a reduction in unrealized gains [1]. Flows to major exchanges, including Coinbase, have also declined, further highlighting the weakening short-term demand [1].

Network activity is another area showing signs of waning enthusiasm. Transaction volumes on the Bitcoin network have retreated, and flows into major exchanges have decreased. These trends are compounded by seasonal factors, with the summer period historically associated with lower trading volumes and reduced institutional activity [1]. The combination of these factors has created a market that is losing momentum, though it has not yet entered a bearish phase.

CryptoQuant also highlights that valuation indicators are nearing critical thresholds, raising the risk of a potential correction. The Bull-Bear Cycle Market Indicator, the P&L Index, and the MVRV Z-score are all approaching levels that could signal a shift into bearish territory. Should this occur, the Bull Score Index could fall below 40, a level not seen since April 2023 [1]. This potential fragility is further exacerbated by sluggish liquidity growth, which could make the market more vulnerable to new selling pressures.

Despite these cautionary signals, the broader structure of the market remains bullish. Bitcoin’s hashrate continues to hit all-time highs, indicating that miners remain confident in the network’s long-term viability [2]. The cryptocurrency is currently consolidating near $117,000, a key psychological level, with no clear breakout or breakdown [5]. Meanwhile, Bitcoin’s dominance in the crypto market remains stable at around 52%, suggesting that both institutional and retail investors continue to favor it over altcoins [6].

The coming weeks will be pivotal in determining whether Bitcoin will regain its upward momentum or remain in a prolonged consolidation phase. On-chain data shows that new address growth is still strong and open interest in Bitcoin futures has stabilized, indicating that participants are not yet exiting the market [1]. However, a drop below $114,000 could trigger increased selling pressure, particularly given the asset’s high correlation with the S&P 500 [7]. Analysts also point out that a weakening U.S. dollar could support Bitcoin’s long-term narrative, though this remains a forecast and not a confirmed trend [7].

In summary, the Bitcoin market is at a crossroads. While it has not yet entered a bearish cycle, the signs of a slowdown are clear. Investors are now navigating a landscape defined by consolidation and cautious optimism, waiting for a catalyst that could reignite bullish momentum. The evolution of capital flows, macroeconomic trends, and further on-chain activity will be key in determining the next chapter for the world’s largest cryptocurrency.

Sources:

[1] Bitcoin Holds Near All-Time High, No Overheating Signs (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-time-high-signs-overheating-2508/)

[2] Bitcoin Price Drops, But Miner Confidence Soars as Hashrate Hits All-Time High (https://thecurrencyanalytics.com/bitcoin/bitcoin-price-drops-but-miner-confidence-soars-as-hashrate-hits-all-time-high-189699)

[5] Bitcoin Settles Below $117,000 as Traders Await Breach of Pivotal Levels (https://www.economies.com/crypto/news/bitcoin-settles-below-$117,000-as-traders-await-breach-of-pivotal-levels-47063)

[6] Altcoins Still Lag Behind Bitcoin (https://www.mitrade.com/au/insights/news/live-news/article-3-1026464-20250810)

[7] US Dollar’s Fall Could Send Bitcoin to $150K (https://www.interactivecrypto.com/wall-streets-secret-bet-why-the-us-dollars-fall-could-send-bitcoin-to-150k)