Bitcoin News Today: Bitcoin drops 0.8% to $117,911 amid Fed policy uncertainty and tight consolidation

Bitcoin's price dipped below $118,000 during the ongoing session, with the cryptocurrency briefly falling to $117,851.01 USDT before a slight recovery, according to Binance data [3]. The decline occurred amid low market volatility, with analysts closely monitoring liquidity clusters and technical indicators for signs of a potential breakout [2]. The price movement marked the third consecutive day of losses for Bitcoin, which had previously dipped below $116,000 during the Federal Reserve’s FOMC meeting but rebounded above $118,000 in the following days [1].

The market has entered a period of tight consolidation, with Bitcoin hovering near the $118,000 level and compressed Bollinger Bands signaling the potential for sharp price swings. Over the past 16 days, the price has remained within a range of $116,000 to $120,000, with whale wallets continuing to accumulate and OTC trading balances reaching significant levels [4]. On July 24, Bitcoin fell 0.8% to $117,911.30 as traders adopted a more cautious stance, awaiting clarity from the Fed on its next monetary policy move [5].

The broader cryptocurrency market has remained relatively stagnant, with nearly 90% of digital assets fluctuating less than 4% over the past 24 hours [7]. Meanwhile, Bitcoin’s net realized profit dropped to $1.4 billion amid a wave of price swings triggered by industry-related news, particularly concerning Galaxy [8].

Analysts have highlighted the 50, 100, and 200-day simple moving averages—currently clustered between $114,000 and $118,000—as key support and resistance levels to watch [9]. The ongoing consolidation phase suggests the market is seeking direction, with a breakout or breakdown likely depending on the Fed’s decision and broader macroeconomic conditions [10].

On-chain analyst Boris Vest noted that Bitcoin’s ability to stay above $115,000 indicates that larger passive buyers are stepping in to absorb selling pressure [3]. Technical indicators show strong passive buying, maintaining stability despite reduced institutional inflows. Meanwhile, liquidity clusters and short liquidation triggers remain under close observation, with resistance levels noted at $119,259, $120,300, and $123,300 [3].

As the market waits for the Fed’s next move, Bitcoin faces the dual challenge of maintaining stability amid compressed volatility and managing risks of sudden price swings. The upcoming rate decision is seen as a pivotal moment for the cryptocurrency’s short-term trajectory, with cautious positioning advised as uncertainties persist [10].