Bitcoin News Today: Bitcoin falls below $114K support amid rising macro risks and selling pressure

Bitcoin’s price has fallen below the critical $114,000 support level, marking a significant setback for bullish traders who had previously defended this key threshold [1]. The recent drop has shifted the market into a defensive posture, as selling pressure intensifies amid heightened macroeconomic uncertainty and increased liquidation events [1]. This breakdown has sparked concerns about the broader resilience of the crypto market, particularly with altcoins also struggling to gain traction [3].

The decline came amid a backdrop of growing macroeconomic risks, with traders closely watching developments in central bank policy, inflation trends, and global economic stability [3]. In particular, Bitcoin’s inability to maintain a position above $120,000 this week highlighted the fragility of its current rally [3]. The drop below $114K has been interpreted by some as a sign that the market is experiencing a "grand flush out," with long-term holders forced to reassess their positions [2]. The situation has also raised questions about the sustainability of the previous bull run and whether a broader correction is imminent [6].

Analysts have noted that the market's current dynamics are being shaped by a combination of internal and external factors [3]. On the internal front, the failure to hold key support levels suggests a lack of conviction among bullish investors [1]. On the external side, rising inflation and potential regulatory pressures continue to weigh on investor sentiment [3]. Meanwhile, the altcoin market has not been spared, with most tokens experiencing a downturn in performance alongside Bitcoin [4].

The recent price action has also been attributed to geopolitical and market-specific events [5]. For example, one report suggested that Bitcoin’s drop below $114K coincided with a high-profile geopolitical statement, adding to the sense of instability in the market [5]. However, it is important to distinguish between correlation and causation, as such events may not have a direct impact on Bitcoin’s price unless they influence broader investor behavior.

Looking ahead, the path for Bitcoin appears to be uncertain [1]. If the bears continue to gain control, the next line of defense could be further support levels, potentially pushing the price into more volatile territory. Investors are now closely monitoring whether buyers will step in at these critical levels or if the downward trend will persist [1]. The coming weeks could offer more clarity, though the current environment suggests a challenging road ahead for BTC bulls [1].

Source: [1] Bitcoin Breaks Below $114K as BTC Bulls Face Tough Road Back (https://blockonomi.com/bitcoin-breaks-below-114k-as-btc-bulls-face-tough-road-back/)

[2] Altcoin Season Will Never Look the Same Again (https://blockonomi.com/the-grand-flush-out-is-here-altcoin-season-will-never-look-the-same-again/)

[3] Bitcoin struggles below $120K as macro risks rise, altcoin market turns red (https://invezz.com/news/2025/08/03/bitcoin-struggles-below-120k-as-macro-risks-rise-altcoin-market-turns-red/)

[4] XT Community News (https://www.xt.com/en/blog/community-news/2025-08-03T01:13:00.000Z)

[6] Latest News on Bitcoin, Altcoins & Market Updates (https://cryptoadventure.com/news/)