Bitcoin News Today: Bitcoin dips below $116,000 in early July 2025 posting 2.25% 24-hour loss amid $116K–$120K consolidation phase

Bitcoin briefly dipped below $116,000 in early July 2025, marking a temporary retreat for the world’s largest cryptocurrency after months of volatile swings. The decline occurred amid a broader consolidation phase between $116,000 and $120,000, where the asset has struggled to gain decisive momentum. According to HTX market data, Bitcoin traded at $116,396 at the time of the report, reflecting a 24-hour decrease of 2.25% [1]. Analysts observed that the dip to $116,000 was short-lived, with prices rebounding after testing key support levels. This move followed a brief all-time high above $123,000 in early July, underscoring Bitcoin’s sensitivity to macroeconomic developments and liquidity dynamics [3].

The $116,000 threshold became a focal point for traders, as it represented a critical psychological level and a potential trigger for further downward pressure. Market data indicated that Bitcoin’s intraday low of $116,000 coincided with a surge in Ethereum withdrawals, suggesting shifting capital flows within the crypto ecosystem. However, the rebound above $117,200 during the Asian session highlighted institutional resilience, as investors defended the price range [2]. Analysts attributed this behavior to strategic liquidity clusters and hedging activities, though some warned that prolonged indecision could expose vulnerabilities in the market’s structure [1].

The tug-of-war between bullish and bearish forces intensified as Bitcoin’s dominance metric climbed back to 62%, signaling renewed interest in the leading cryptocurrency. Conversely, the lack of follow-through above $120,000 raised concerns about waning buying pressure. Predictive models and trader sentiment diverged: while some analysts suggested a potential pullback to $114,000–$115,000 due to technical gaps, others emphasized the strength of the $116,000 support zone [4]. Prediction markets remained cautiously optimistic about Bitcoin’s long-term trajectory, with $131,000 cited as a potential target if bulls reclaim key resistance levels [3].

Macroeconomic expectations played a pivotal role in shaping Bitcoin’s near-term outlook. With major July economic events—including inflation data and central bank policy updates—looming, the crypto market remained in a wait-and-see mode. Short-term traders liquidated leveraged positions, wiping out over $700 million in long-side bets, reflecting heightened volatility [3]. Yet, the absence of a breakdown below $115,739—a prior support level—provided a buffer for bulls aiming to stabilize the asset [6].

Analysts caution that without a clear directional breakout from the $116,000–$120,000 range, Bitcoin could face renewed volatility, testing the resolve of both institutional and retail investors. The market’s equilibrium, though fragile, appears functional for now, with traders closely monitoring liquidity shifts and macroeconomic signals for the next catalyst [1].

Sources:

[1] [Bitcoin Trapped in $116K–$120K Range Amid 1.7% Daily Drop](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-trapped-116k-120k-range-1-7-daily-drop-macroeconomic-events-loom-2507/)

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

[3] [What Traders Should Do as the Crypto Markets Dip](https://www.fxstreet.com/cryptocurrencies/news/crypto-markets-dip-liquidating-over-700-million-from-leveraged-traders-853-being-longs-202507240429)

[4] [Bitcoin May Drop. BTC Traders May Face Price Traps](https://www.forexmart.com/analytical-reviews/article/418259)

[6] [XRP's July Uptrend Threatened as Bitcoin's $120K Price](https://finance.yahoo.com/news/xrps-july-uptrend-threatened-bitcoins-115010593.html)