Bitcoin News Today: Bitcoin Hovers Near $118,000 as Key Breakout Looms

Bitcoin is at a critical juncture, hovering near $118,000 as it faces a decisive test that could determine whether it surges to a new all-time high or experiences a reversal. Analysts are closely monitoring price action and whale behavior for clues about the next move. Current price stagnation near $116,560 means the coming weeks and especially the fourth quarter could be pivotal in shaping Bitcoin’s future trajectory [1].

The market has shown mixed signals, with Bitcoin briefly hitting $122,000 on July 4, driven by the movement of a long-dormant whale that transferred approximately 80,000 BTC, valued at around $8.6 billion, after 14 years of inactivity. This activity coincided with strong bullish sentiment but was followed by a pullback to $117,000, raising concerns of a potential bull trap as traders accumulate long positions ahead of a possible rebound [2].

Long-term bullish indicators remain intact, with Bitcoin recovering from recent volatility and returning to a key price range around $118,000. This level is considered critical for a breakout, and its performance will likely shape the near-term direction of the market [3].

On the institutional side, Bitcoin ETF outflows have continued, indicating a cooling of speculative interest amid the near-all-time high. Short-term holders have reportedly offloaded $18 billion in assets, while larger whales have been stepping in to accumulate. The market cap has stabilized near $3.7 trillion, with Bitcoin trading at approximately $114,570 and Ethereum at $3,650 [4].

Analyst Lennaert Snyder highlights that $118,000 is a decisive breakout level. Failure to reclaim it could signal downside risk. Meanwhile, the weekly chart from Trader Tardigrade shows a valid bull flag pattern, suggesting a potential move toward $136,000 if upward momentum holds [5]. The RSI is not near historical top levels, indicating there is still room for continuation of the bullish trend [5].

Institutional demand has significantly outpaced new supply. Bitwise reports that institutions have purchased 545,579 BTC year-to-date, compared to 97,082 BTC in new supply. This trend is reinforced by multi-year data from Bloomberg and Glassnode, which show sustained demand exceeding issuance [6]. Additionally, the shrimp-to-fish cohort is absorbing over 17,000 BTC monthly—surpassing the 13,850 BTC issued—indicating strong retail accumulation [6].

Market positioning has shifted, with perpetual funding rates dropping below 0.1%, signaling a cooling in leveraged long positions and reduced speculative appetite. This follows a period of euphoric highs in derivatives markets [7]. Coinvo’s liquidation map shows that short liquidations above $125,000 could total nearly $20 billion, while long liquidations cluster near $122,000–$123,000, marking key risk zones [7].

ETF flows on August 7 saw $277.4 million in Bitcoin and $222.3 million in Ethereum purchased, coinciding with Bitcoin holding above $115,300 support. Snyder’s short-term chart suggests a potential target of $122,733 if $117,880 breaks, with further resistance ahead [8].

As Bitcoin navigates this critical juncture, the focus remains on whale movements and broader macroeconomic developments. The coming weeks will likely determine whether the current bullish momentum is sustainable or if the market will enter a prolonged consolidation phase. For now, the key level of $118,000 remains the focus, with the potential to unlock new all-time highs if successfully retested [9].

Sources:

[1] FXLeaders, https://www.fxleaders.com/news/tag/bitcoin-btc/

[2] Instagram, https://www.instagram.com/p/DNDQs6mzUzs/

[3] Investing.com, https://ng.investing.com/analysis/cryptocurrency

[4] Crypto, https://cryptoadventure.com/crypto-market-cap-halts-at-3-7t-as-traders-rotate-out-institutions-double-down-on-btc-eth/

[5] Coinmarketcap, https://coinmarketcap.com/community/articles/6895c4bb2b7b6c46706e5ea6/

[9] Crypto, https://crypto.news/on-crypto-market-july-was-full-of-life-whats-next/