Bitcoin News Today: Bitcoin Holds Above Key $117K Support Amid Risk of Sharp Decline if Breakdown Occurs

Bitcoin’s price action has drawn attention to a critical on-chain support level near $117,000, following a sharp rally from $110,000 to $117,000 that created a low-density accumulation zone. This “on-chain air gap”—characterized by minimal transaction volume and historical accumulation—has emerged as a pivotal area for the cryptocurrency. Since reaching an all-time high of $122,600 in July 2025, Bitcoin has remained above the $117,000 threshold, indicating its role as a short-term support level. However, analysts caution that a breakdown below this zone could trigger a rapid decline, given the lack of historical buying pressure in the range [1].

The current dynamics mirror past Bitcoin cycles, where rapid price surges left behind under-accumulated zones that later became consolidation bases. If $117,000 fails, the $110,000–$117,000 range could evolve into a bottoming area, where long-term investors may accumulate before the next upward move. This scenario hinges on Bitcoin’s ability to maintain above $115,955, as per Bollinger Bands analysis, and avoid a retest of the $111,000 level, which would signal a deeper correction [2].

Technical indicators highlight a fragile balance. While the relative strength index (RSI) remains neutral at just below 60, shorter-term moving averages like the 10-day EMA and SMA currently trade bearishly above the price. In contrast, longer-term trends, including the 50-, 100-, and 200-day moving averages, continue to support an uptrend [2]. On-chain data from CryptoQuant’s Flow Pulse indicator adds nuance: unusually low inflows to exchanges suggest large holders are not offloading assets, contrasting with aggressive selling observed during the 2017 and 2021 peaks [2].

Market sentiment is mixed. The Bitcoin Bull and Bear Market Cycle indicator points to an overheated bullish phase, historically preceding short-term corrections. However, subdued on-chain flows and sustained institutional accumulation reinforce the view that the upward trajectory remains intact—for now. Analysts warn traders to monitor sudden spikes in the Flow Pulse Indicator, which could signal an impending sell-off [2].

Bitcoin’s immediate outlook depends on key price levels. A retest of $120,000 could drive the price toward $122,000–$124,000, challenging the July 14 all-time high of $122,838. Conversely, a drop below $115,000 would force a test of deeper support near $111,000. Exchange inflow dynamics will be critical in determining the severity of any correction [2].

The broader market context includes regulatory developments, such as the recent passage of the GENIUS Act, which initially caused Bitcoin to dip from $120,000 to $117,000 before stabilizing. Meanwhile, Ethereum has shown relative strength, surging to $3,850 in July before settling near $3,600 [4].

Bitcoin’s standoff at $117,000 reflects a complex interplay between institutional demand and technical constraints. While bullish indicators dominate the long-term outlook, near-term risks remain tied to on-chain activity and price action at critical levels. Analysts urge caution, particularly for new buyers, until clearer pullbacks materialize [2].

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/)

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