Bitcoin News Today: Bitcoin Drops to $115,600 as Derivatives Volume Rises 31.75% and Open Interest Up 6.89%

Bitcoin’s price on July 25, 2025, approached $115,600 following a significant intraday decline that breached the lower boundary of a descending channel on the 4-hour chart. This breakdown also pierced a critical ascending trendline that had supported price movements since early July, signaling potential momentum shifts and raising concerns about a bearish trend [1]. The price action had been contained within the descending channel since mid-July, but repeated failed attempts to break above the $118,800–$119,200 resistance zone left the asset vulnerable to a downward correction. The recent dip below $116,000 and the dotted trendline marked a key turning point, with further declines possible if the $115,300 threshold is confirmed [1].

Technical indicators reinforced the bearish sentiment. On the 30-minute chart, the RSI plummeted to 26.9, entering oversold territory, while the MACD expanded negatively, reflecting strengthening downward momentum [1]. Derivatives data added urgency: a 31.75% surge in volume and a 6.89% increase in open interest to $88.3 billion highlighted intensified selling pressure. The long/short ratio dropped to 0.933, indicating short positions dominated the market over the past 24 hours. Liquidations totaled $154.4 million, with $138.2 million in long positions wiped out, underscoring the scale of leveraged bearish activity [1].

Volatility spiked as Bollinger Bands expanded rapidly, with Bitcoin briefly touching $115,100 after breaking below the lower band at $116,100. The 20, 50, and 100-period EMAs began curving downward, with the 100 EMA at $116,528 and the 200 EMA near $113,545 forming key resistance and support levels. The asset’s current position below all EMAs signaled a short-term bearish bias, though a recovery above $117,000 could reinvigorate bullish momentum [1].

On the weekly chart, Bitcoin remained within a rising channel despite a rejection near $120,300. A deeper pullback toward the median line at $110,000 became increasingly likely if daily structure failed to stabilize. The Smart Money Concept highlighted a critical breakout-of-structure zone between $112,000 and $113,500, which had previously acted as a demand area and could become the next target for sellers [1].

Short-term price forecasts hinged on key levels. A failure to reclaim $116,200 might push Bitcoin toward $113,500, where the 200 EMA and prior support converge. A break below this could extend losses to $112,000–$111,000, marked by the daily breakout-of-structure liquidity cluster. Conversely, a sustained move above $117,000 could retest $118,000 and eventually challenge the recent high of $120,300 [1].

The analysis underscored the importance of monitoring support near $113,500 before initiating long positions, given the prevailing bearish momentum in volume and momentum indicators. Traders were advised to balance risk with potential rebounds while adhering to evolving market dynamics.

Source: [1] [Bitcoin (BTC) Price Prediction for July 25](https://coinedition.com/bitcoin-btc-price-prediction-for-july-25-2025/)