Bitcoin News Today: Bitcoin Eyes $122K Breakout as $116K Support Tested in Key Price Battle

Bitcoin’s price action has drawn heightened scrutiny as the asset consolidates between $116,000 and $119,000, with $122,000 identified as a critical resistance level for a potential bullish breakout. Analysts highlight that a sustained move above this threshold could signal broader market confidence, while failure to breach it risks further consolidation or a downward trend [1]. On-chain data suggests a short-term pullback may precede any upward momentum, with declining spot buy volumes and rising unrealized profits acting as early indicators of market fragility [2].

The Long-Term Power Law chart from Alphractal underscores $122,000 as a pivotal level, noting that a breakout would validate renewed bullish sentiment, whereas a failure to clear it could prolong sideways movement [3]. CoinGlass data reveals a sharp drop in spot buy activity over three weeks, from $658.76 million to $97.13 million, reflecting waning investor interest. Concurrently, the Net Unrealized Profit/Loss (NUPL) ratio on CryptoQuant has spiked to 0.57, signaling a growing pool of unrealized profits—a condition historically linked to increased selling pressure [4].

While Bitcoin remains above key macro-level bullish thresholds, liquidity outflows and rising NUPL suggest near-term volatility. A 24-hour liquidation heatmap from CoinGlass points to a likely decline toward $116,000, where liquidity clusters could act as both support and demand zones. Analysts suggest this dip might be necessary to gather strength for a subsequent push toward $122,000, with a successful breakout potentially driving prices to $123,000 or higher [5].

External forecasts vary, with CoinDCX analysts projecting a $122,000-plus move could extend gains to $130,000 by early August, contingent on volume, while Binance Square user “Soldier III” warns a drop below $116,400 could trigger a test of $105,000 [6]. TradingView analysts caution that the $118,000–$119,000 zone remains a key battleground, with a breakdown threatening a consolidation phase [7]. Deriv’s blog notes recent surges past $123,000 and subsequent retracements to $122,000 as potential precursors to larger movements, though uncertainties persist about the sustainability of gains [8].

The market’s next move hinges on volume dynamics and macroeconomic factors. A breakout above $122,000 may attract institutional buyers and algorithmic strategies, amplifying upward momentum. Conversely, a sustained drop below $115,000 could invite profit-taking and repositioning in alternative assets. Analysts emphasize that U.S. interest rate decisions and on-chain activity will remain decisive in shaping Bitcoin’s trajectory.

Sources:

[1] [Bitcoin eyes $122K – But BTC’s price could drop to THIS level first](https://ambcrypto.com/bitcoin-eyes-122k-but-btcs-price-could-drop-to-this-level-first/)

[2] [Markets are digesting recent gains while staying buoyed by ...](https://www.facebook.com/groups/492496885232267/posts/150****874371558/)

[3] [The Long-Term Power Law chart on Alphractal](https://ambcrypto.com/bitcoin-eyes-122k-but-btcs-price-could-drop-to-this-level-first/)

[4] [CoinGlass spot buy activity and CryptoQuant NUPL data](https://ambcrypto.com/bitcoin-eyes-122k-but-btcs-price-could-drop-to-this-level-first/)

[5] [CoinGlass 24-hour liquidation heatmap](https://ambcrypto.com/bitcoin-eyes-122k-but-btcs-price-could-drop-to-this-level-first/)

[6] [When Will the Crypto Market Bull Run Begin in 2025?](https://coindcx.com/blog/crypto-deep-dives/crypto-bull-run-2025/) [Soldier III's Profile | Binance Square](https://www.binance.com/en/square/profile/red-nose-2024)

[7] [Bitcoin Trade Ideas — MARKETSCOM:BITCOIN](https://in.tradingview.com/symbols/BITCOIN/ideas/)

[8] [Blog Search](https://deriv.com/blog-search)