Bitcoin News Today: Bitcoin Dips 0.16% Below $118K as Profit-Taking and Macro Caution Weigh

Bitcoin’s price has repeatedly tested the $118,000 level in late July 2025, with the cryptocurrency dipping below this threshold multiple times amid shifting market dynamics. On July 24, Bitcoin fell below $118,000, marking a 0.16% decline over 24 hours, according to HTX market data [1]. This followed a prior drop on July 18, when the asset recorded a 0.71% decrease in the same period, consolidating a broader trend of profit-taking and macroeconomic caution [4]. Analysts described the movements as tactical rather than systemic, noting the cryptocurrency’s sensitivity to liquidity shifts and regulatory uncertainties [1].

The decline coincided with a broader retreat in speculative activity across the crypto market. Altcoin traders, particularly in high-risk projects, faced heightened selling pressure. The Pump.fun token (PUMP), for example, saw significant outflows as early investors liquidated positions at a loss, compounded by delays in its anticipated airdrop [3]. While not directly tied to Bitcoin’s price action, such developments reflected fragile investor confidence in volatile assets. Meanwhile, Solana (SOL) demonstrated relative resilience, outperforming Bitcoin during the pullback, highlighting divergent risk appetites in a maturing market [2].

Technical analysis highlighted mixed signals for Bitcoin’s near-term trajectory. The $118,000 pullback was viewed as a retest rather than a breakdown, with key support levels below $116,000 seen as critical for signaling deeper corrections [4]. CoinGlass data revealed a buildup of liquidity above spot prices following the July 22 dip, raising expectations of a potential short squeeze [5]. However, Ethereum and other major tokens maintained stability, reinforcing the idea that the decline was confined to Bitcoin rather than indicative of a broader bearish phase [1].

The broader crypto ecosystem experienced divergent trends. DeFi protocols recorded a $1.7 billion outflow within 24 hours, underscoring liquidity risks in the sector [3]. This highlighted the interconnected yet fragmented nature of crypto assets, where volatility in one segment could ripple across others. Institutional activity and macroeconomic cues, such as interest rate decisions, remained key catalysts for directional movement, though the market currently remained in consolidation as investors reassessed risk exposure [1].

By July 24, Bitcoin had settled below $118,000, reflecting a 0.6% daily drop and a 3.8% correction from its all-time high [6]. Analysts emphasized that while short-term fluctuations were influenced by external factors, the asset’s long-term fundamentals—its capped supply and growing institutional adoption—remained intact. The 0.71% decline on July 18 was interpreted as a cyclical fluctuation typical of crypto markets, where rapid swings often precede consolidation periods [1]. With key support zones under scrutiny and speculative activity cooling, market participants awaited clarity on macroeconomic conditions and regulatory updates to determine Bitcoin’s next directional move [6].

Source:

[1] [Bitcoin Dips Below $118,000—Discover the Driving Forces](https://www.instagram.com/p/DMb4Pc5qshG/)

[2] [Why is Solana Outperforming as Bitcoin and Others Pull Back?](https://discover.luno.com/daily-briefing/)

[3] [DeFi Whales Pull $1.7 Billion in 24 Hours](https://www.mitrade.com/au/insights/news/live-news/article-3-981697-20250724)

[4] [Bitcoin Dips 0.71% to $118K as Altcoins Plunge](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dips-0-71-118k-altcoins-plunge-dominance-falls-59-2-2507/)

[5] [Bitcoin Due 'Massive Short Squeeze'](https://cointelegraph.com/news/bitcoin-due-massive-short-squeeze-btc-dominance-bounces-to-62)

[6] [Bitcoin Consolidates Below $120K](https://www.mitrade.com/au/insights/news/live-news/article-3-983262-20250724)