Bitcoin News Today: Bitcoin Holds Above $117,000 on Institutional Buying as On-Chain Data Signal Strong Support

Bitcoin’s price remains anchored above the critical $117,000 on-chain support level, a threshold that has gained significance following its sharp rally from $110,000 to $117,000 in late July 2025. This price surge created what analysts describe as an “on-chain air gap”—a low-density accumulation zone characterized by minimal transaction volume and historical accumulation activity [1]. The zone’s formation has drawn attention as Bitcoin has held above it since reaching an all-time high of $122,600, suggesting strong near-term support. However, a breakdown below this level could trigger a reevaluation of market dynamics, potentially transforming the $110,000–$117,000 range into a base for future accumulation [2].

The resilience of the $117,000 level is bolstered by institutional accumulation and sustained buyer interest, as indicated by on-chain data. Unlike past bull market peaks in 2017 and 2021, where elevated exchange inflows signaled impending corrections, current metrics reveal abnormally low selling pressure. The Flow Pulse indicator, which tracks investor behavior around exchange activity, underscores this divergence, showing minimal large-holder liquidation despite Bitcoin’s brief all-time high of $122,838 on July 14 [1]. Arab Chain, a crypto analyst at CryptoQuant, notes that this behavior reflects continued confidence among major holders, contrasting sharply with historical patterns [2].

Technical indicators further highlight Bitcoin’s mixed short-term prospects. While the 30- and 365-day moving averages remain bullish, shorter-term metrics like the 10-day exponential and simple moving averages currently sit above the price, signaling caution. Bollinger Bands show Bitcoin trading near the upper range, with the middle band at $115,955 acting as a key support line. The relative strength index (RSI) hovers just below 60, indicating neutral momentum, though the MACD and Momentum indicators suggest short-term bearishness [3].

The market’s next move hinges on Bitcoin’s ability to reclaim the $120,000 threshold and test the upper Bollinger Band at $124,041. A successful breakout could reinvigorate bullish sentiment and drive prices toward retesting the July 14 high or even establishing a new record. Conversely, a drop below $115,000 could trigger a deeper correction, particularly if on-chain exchange flows surge—a historical precursor to selling pressure [5]. Arab Chain advises traders to monitor the Flow Pulse Indicator closely, as any sudden rise might signal an impending reversal [6].

Historical parallels also offer insights. Past bull runs have shown that rapid price surges often leave behind low-density areas that later serve as consolidation bases. If $117,000 breaks, the $110,000–$117,000 zone could evolve into a similar structure, where long-term buyers accumulate before the next major rally [4]. This pattern suggests that even in the event of a short-term dip, the zone remains a pivotal area for market participants to watch.

The broader market context reflects a balance between institutional demand and retail caution. While 2025’s rally has defied typical bull-run patterns, short-term volatility remains likely as the market digests recent gains. For now, Bitcoin’s consolidation above $117,000 underscores the delicate interplay between sustained buyer interest and technical resistance, with the coming weeks poised to determine the next chapter in its price trajectory [7].

Sources:

[1] [Bitcoin News Today: Bitcoin Holds Above $117K as ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-117k-institutional-accumulation-reinforces-key-support-zone-2507/)

[2] [Bitcoin's 2025 rally defies past bull run peaks, here's how](https://crypto.news/bitcoin-2025-rally-defies-past-btc-bull-run-2025/)

[3] [Bitcoin Price Holds $118K as $116K Breakdown Looms](https://www.tradingnews.com/news/bitcoin-price-btc-usd-battles-116k-usd)

[4] [When Will the Crypto Market Bull Run Begin in 2025?](https://coindcx.com/blog/crypto-deep-dives/crypto-bull-run-2025/)

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

[6] [Bitcoin Price Prediction: BTC dips below $118k as $120 ...](https://coinjournal.net/news/bitcoin-price-prediction-btc-dips-below-118k-as-120k-resistance-level-holds/)

[7] [Research](https://www.blockscholes.com/research)