Bitcoin News Today: Bitcoin Holds Above $114K as Bearish Orderbook Data Signals Weak Momentum

Bitcoin remains above $114,000 as traders observe the potential formation of a new structural base ahead of a potential breakout. However, key on-chain indicators suggest that bullish momentum is yet to materialize. The cryptocurrency ended July with a 4.26% decline, marking the first significant correction since the beginning of the second quarter and signaling a possible shift in market momentum [1].

Historically, Bitcoin has demonstrated a pattern of forming consolidation bases after moderate corrections. Following a 5% drop near $77,000 in early Q2, BTC entered a consolidation phase that eventually led to a five-week rally reaching $109,000. A second consolidation between $105,000 and $109,000 then propelled the price to its current all-time high of $123,000. Analysts are now watching whether the current range of $110,000 to $119,000 will follow a similar trajectory [1].

One key short-term support appears to be forming around $114,500, with a liquidity cluster worth $24 million reported in this area. If this level is breached, it could trigger confirmation of support. However, traders stress that structural setup alone is insufficient for a successful bullish continuation. Stronger buying interest is needed to reinforce the trend and drive the price higher [1].

Orderbook data from Binance Spot, as analyzed by Hyblock Capital, reveals a bearish tilt in the current market sentiment. The 10% Bid-Ask Ratio is at -0.208, slightly improved from the 24-hour average of -0.27, but still below neutral, indicating seller dominance. The bid-focused histogram stands at 0.044, down from the 24-hour average of 0.066, further underlining weak demand on the buy side [1]. Analysts note that without a meaningful increase in bid-side support, the price may remain confined within the current range.

Volume trends also fail to confirm a strong bullish case. Weekly chart data shows rising bearish volume alongside declining bullish volume. Earlier in the year, upward moves were accompanied by increasing green volume, indicating strong accumulation. In contrast, the current price range shows no such follow-through, with analysts reporting limited buying interest despite the potential for base formation [1].

At press time, Bitcoin trades at $114,793.25, up 0.48% in the past 24 hours. However, the continued weakness in order flow and volume indicators suggests caution for traders near current levels. While the market structure remains bullish as long as BTC stays above $114,000, this view depends on stronger buyer participation, which has yet to materialize [1].

The ongoing divergence between structural patterns and on-chain data highlights the fragile nature of the current setup. Without a significant increase in bullish volume, the path higher may remain challenged by bearish short-term pressure.

Source: [1] Bitcoin Holds $114K, But Orderbook Data Flags Bearish Pressure (https://coinmarketcap.com/community/articles/68946c2db84edf711c3cad4a/)