Bitcoin News Today: Bitcoin Pullback Seen as Healthy Reset, Not Bull Market End

Bitcoin’s recent price pullback has triggered mixed reactions from traders, but analysts are emphasizing that the correction is a normal phase within the ongoing bull cycle rather than a sign of a larger downturn. According to on-chain data from Glassnode, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) currently stands at 0.34, indicating that most recent transactions are occurring at a loss [12]. This metric suggests a “healthy reset” in market sentiment, as short-term holders are realizing losses rather than pushing the price into an overheated territory that would signal a top [12].

Swissblock analysts have noted that this phase often precedes a reacceleration in the uptrend, as profit-taking pressure eases and buyers with stronger conviction begin to accumulate [12]. The price has consolidated around $113,700 after a week of lower highs and lower lows, and the RSI remains in a neutral range of 43–47, reflecting mild bearish pressure but no signs of extreme overselling [12]. This technical setup suggests that the market is in a consolidation phase rather than a capitulation event [12].

Bitcoin is currently facing immediate resistance at around $116,000, where past rallies have stalled, while support is seen near $113,000. A strong close above the resistance could trigger renewed bullish momentum toward $120,000, whereas a break below $113,000 may lead to a deeper pullback toward $110,000, where additional buying pressure is expected to emerge [12].

In the broader market context, the Bitcoin dominance has edged closer to 60%, signaling that altcoins are losing some of their relative strength. However, altcoins like Ethereum have shown resilience, surging nearly 170% from recent lows and nearing $3,850 [1]. Ethereum has attracted significant institutional and retail attention, with over $2.5 billion in ETH accumulated in recent weeks [1]. Meanwhile, the Altcoin Index has moved between 41% and 35%, indicating that some altcoins are outperforming Bitcoin [1].

On-chain data also reveals that large holders have accumulated over 218,000 BTC, suggesting confidence in the asset’s fundamentals [10]. The Bitcoin MVRV ratio, which measures the profitability of on-chain positions, is currently in a balanced zone, reinforcing the idea that accumulation is likely to continue if macroeconomic conditions remain favorable [10].

Historically, corrections of up to 20% have been common during bull cycles, such as the 2020–2021 period, without signaling the end of the trend. With delays in U.S. monetary policy adjustments compared to global trends, the macroeconomic backdrop is expected to continue influencing price action in the near term [11]. Analysts like Joao Wedson have suggested that the Bitcoin bull run could extend for at least two more months, with altcoins potentially experiencing shorter correction phases [12].

Given the current technical and on-chain conditions, the pullback appears to be a temporary pause rather than a structural reversal. Investors are advised to view the dip as an accumulation opportunity, particularly as Bitcoin remains near key support levels and altcoins continue to consolidate ahead of a potential breakout [13].

[1] Source: [1] Bitcoin Correction Begins, Analyst Says It's Time to Accumulate for Next Crypto Run (https://coinedition.com/bitcoin-correction-accumulation-altseason/)

[10] Source: [10] Bitcoin Whales Are Buying the Dip: Rally Imminent Hopes (https://coinedition.com/bitcoin-whales-are-buying-the-dip-rally-imminent-hopes/)

[11] Source: [11] Realized Price Theory Says $123000 Is Not The Bitcoin Top (https://www.mitrade.com/au/insights/news/live-news/article-3-1007228-20250802)

[12] Source: [12] Bitcoin Price Pullback Is Normal, Not the End of the Rally (https://coindoo.com/market/bitcoin-price-pullback-is-normal-not-the-end-of-the-rally/)

[13] Source: [13] Bitcoin News Today: Bitcoin Corrects Near $114670 as Analysts Highlight Accumulation Opportunity (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-corrects-114-670-analysts-accumulation-opportunity-2508/)