Bitcoin News Today: Bitcoin Dips Below $116,000 with 2.25% 24-Hour Decline Amid Liquidity Pressures and Macro Uncertainty

Bitcoin briefly dipped below $116,000 on July 23, marking a temporary pullback from its recent peak of $123,091 [1]. According to HTX market data, the cryptocurrency later traded at $116,396, reflecting a 2.25% decline over 24 hours [1]. The movement, observed during European trading hours, highlighted the fragility of Bitcoin’s momentum as the asset grappled with liquidity imbalances and conflicting macroeconomic signals. The dip pushed BTC just above $116,000 before a partial rebound to the $117,000–$119,000 range, underscoring the market’s struggle to establish directional clarity [6].

The consolidation within a $116,000–$120,000 range has defined Bitcoin’s performance in July, with single-day drops of 1.7% and a 0.48% decline over the weekend further illustrating the tug-of-war between buyers and sellers [1]. CoinGlass data revealed liquidity clusters above current levels, which traders caution could amplify short-term volatility as supply-demand imbalances persist. A prior dip to $115,701 earlier in the week also signaled weakening momentum, prompting analysts to focus on key support and resistance levels [1].

Bitcoin’s dominance metric, now at 62%, has drawn attention as a potential precursor to a short squeeze. Traders highlighted the accumulation of overhead liquidity as a catalyst for abrupt directional moves, warning that late entrants face heightened risk [1]. Technical analyses emphasize the $115,000 and $120,000 thresholds as critical junctures. A breakthrough at either level is anticipated before year-end, though the absence of a clear catalyst has hindered decisive movement [1].

Macro factors have added complexity to the outlook. The final days of July, marked by the FOMC meeting, U.S. Treasury borrowing plans, and tariff policy debates, are viewed as pivotal for shaping market sentiment [1]. Edul Patel of Mudrex noted that these developments could reshape investor behavior, while Felix Juavin of Forward Guidance stressed the need for policy clarity from the Supreme Court and QRA meetings. Some traders predict BTC could test the $114,000–$115,000 range due to potential gap closures [4].

The broader crypto market has mirrored Bitcoin’s range-bound behavior, with over $700 million in liquidations reported as BTC consolidates [5]. Ethereum withdrawals have also risen, signaling a possible shift in investor preferences [3]. Despite institutional activity—such as Genius Group’s BTC accumulation and Satsuma Technology’s record treasury raise—the lack of sustained buying pressure has limited BTC’s ability to break out of its trading range [1].

Analysts advise investors to monitor liquidity dynamics and macroeconomic catalysts, as volatility remains entrenched. While historical patterns suggest BTC could test critical thresholds in the coming weeks, the absence of a definitive breakout underscores the need for caution. Clarity on U.S. monetary policy and geopolitical developments will be key to unlocking the next phase of price action [1].

Source: [1] [Bitcoin Price Analysis: BTC Struggles To Gain Momentum, Hovers Around $118,500] [https://bitzo.com/2025/07/bitcoin-price-analysis-btc-struggles-to-gain-momentum-hovers-around-118500]

[3] [Bitcoin Dips Below $118K as Ethereum Withdrawals Climb] [https://margex.com/en/blog/bitcoin-dips-below-118k-as-ethereum-withdrawals-climb/]

[4] [Bitcoin may drop. BTC traders may face price traps | Market ...] [https://www.forexmart.com/analytical-reviews/article/418259]

[5] [Crypto markets dip, liquidating over $700 million from ...] [https://www.mitrade.com/insights/news/live-news/article-3-982524-20250724]

[6] [Volatility calls grow as BTC dominance dips and Bitcoin ...] [http://www.msn.com/en-us/money/markets/volatility-calls-grow-as-btc-dominance-dips-and-bitcoin-altcoin-correlation-weakens/ar-AA1IZUMP?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&ocid=finance-verthp-feeds&renderwebcomponents=1&wcseo=1]