Bitcoin News Today: Bitcoin Consolidates at $117K Support as On-Chain Accumulation Near $115K Hits 100%

Bitcoin’s recent price movements have underscored the emergence of a critical support zone near $117,000, with on-chain data and technical analysis revealing structural shifts in market dynamics. Over 1.48 million BTC changed hands in mid-July, reflecting concentrated accumulation near $117,000 and increased buying pressure between $105,000 and $120,000, while selling activity remained subdued below $100,000 [1]. This divergence in behavior suggests a transition toward buyer dominance at elevated price levels, with the $117K–$118K range solidifying as a focal point for stabilization [2].

The supply change chart highlights pronounced accumulation within the $100,000–$115,000 corridor, indicated by green bars above the zero line. As prices approached $115,000, the percentage of Bitcoin accumulated neared 100%, signaling that holders in this zone are retaining assets rather than offloading them [1]. This trend has reinforced buying pressure and contributed to price consolidation at higher levels. Conversely, distribution—marked by red bars below the zero line—remained concentrated between $85,000 and $95,000, where selling pressure historically peaked. However, recent data show this distribution has diminished, suggesting the market has absorbed much of the available supply [2].

Technical patterns further validate the significance of the $117K support. Bitcoin has traded within a symmetrical triangle pattern, with consolidation between $115,724 and $122,077 reinforcing the zone as a potential catalyst for a breakout. Institutional analysts note that $117,000 has transitioned from a psychological benchmark to a structurally critical level, supported by a multi-year bullish megaphone breakout [1]. A sustained move above $122,077 could drive prices toward $140,000, while a breakdown below $117K risks a deeper correction to $100,000 or the Q1 2025 accumulation zone at $93,000 [2]. On the 4-hour chart, volume has shifted toward the triangle’s boundaries, with traders anticipating a directional move. The daily chart also reveals an inverse head and shoulders pattern, where a successful retest of $117K—confirmed by a close above $118K—projects a target of $125,500 [1].

On-chain metrics add nuance to the analysis. The NVT (Network Value to Transaction) Golden Cross has surged to 1.98, nearing its historical “overheated” threshold of 2.2, which typically signals overvaluation [1]. However, Bitcoin’s price has risen alongside a divergence in NVT, suggesting real on-chain activity rather than speculative frenzy. Shifts in holder behavior, with long-term holders net distributing and short-term holders net accumulating, mirror late-stage bull market patterns, raising questions about sustainability [1]. Cumulative net inflows into major Bitcoin ETFs reached $54.47 billion in July, driven by institutional demand, while macroeconomic uncertainties—such as potential delays in Federal Reserve policy decisions—remain a risk to risk assets [2].

Traders must remain vigilant as Bitcoin navigates this pivotal juncture. A breakout above $122,077 could reignite bullish momentum, while a breakdown below $117K would likely trigger a retest of the $93K accumulation zone. Coinglass liquidation heatmaps highlight the volatility of leveraged positions, with $28.6 million in long liquidations and $25.2 million in short liquidations recorded within a single 24-hour period in early July, underscoring rapid sentiment shifts [1]. Risk management strategies, including tight stop-loss orders and hedging with options, are recommended to mitigate exposure to sudden volatility [2].

The evolving interplay between technical patterns, institutional activity, and macroeconomic factors will shape Bitcoin’s trajectory. As the market digests these dynamics, the $117K–$118K support zone remains a key determinant of whether the asset sustains its current momentum or faces a deeper correction.

Source: [1] [Bitcoin Critical $117,000 Support and the Impending Bullish-Bearish Divergence](https://www.ainvest.com/news/bitcoin-critical-117-000-support-impending-bullish-bearish-divergence-2507/)

[2] [Bitcoin Holds Above $117K as Buyers Reinforce Key Support Zone](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-117k-buyers-reinforce-key-support-zone-2507/)