Bitcoin News Today: Bitcoin Retraces 7% From ATH As Market Eyes $110,000 Support Test

Bitcoin has retreated 7% from its all-time high of $123,000, settling near $114,000, according to recent market data [1]. This move reflects a shift in the asset’s momentum from a strong bullish trend to a consolidation phase. Prominent analyst Willy Woo noted that the July uptrend has lost steam and may now enter a period of sideways movement ahead of another breakout attempt [1]. Elevated speculation and profit-taking have contributed to this pullback, with profit realization surging to nearly $3 billion per day on average in July [1]. While this sell-off mirrors patterns observed at prior peaks, it remains less intense than the $4.5 billion per day levels seen in late 2024 [1].

Swissblock highlighted that this pullback should be viewed as a tactical cooldown rather than a sign of capitulation [1]. If macroeconomic and on-chain conditions remain stable, a breakout reset could occur as early as August [1]. However, this outlook contrasts with broader market cycle expectations that point to a potential top as late as October amid rising macroeconomic uncertainty [1].

Options activity has shown a mixed picture, with a sharp increase in demand for short-dated bullish options across 1-week, 1-month, and 3-month tenors, as indicated by a 4% to 6% jump in the BTC 25 delta skew [1]. This suggests that traders are either anticipating a near-term rebound or hedging against a potential upside move. At the same time, Deribit data showed heavy hedging for downside risks at $105,000 and $110,000 for the August 8th and 22nd expiries [1]. This indicates market participants are preparing for a potential dip to these levels in the near term.

Meanwhile, demand on the spot market has weakened, as shown by the Coinbase Premium Index (CPI), which turned negative for the first time since May [1]. This suggests that U.S. investor demand has eased in the past two weeks, though a strong rebound in the CPI could signal renewed buying interest and a potential breakout attempt.

Research also suggests that Bitcoin may face a key support test at $110,000, with price action potentially dropping as low as $112,000 if this level fails [2][3]. Short-term holders appear to be driving the next major price movement, with the market at a pivotal juncture [4]. While the immediate outlook remains cautious, analysts remain divided on whether this pullback will lead to a deeper correction or serve as a setup for a new bullish phase.

Source:

[1] Bitcoin falls 7% from ATH – Is $110K BTC’s next key test? (https://ambcrypto.com/bitcoin-falls-7-from-ath-is-110k-btcs-next-key-test/)

[2] PEPE Falls Nearly 5% as Whale Selling and Exchange ... (https://www.coinglass.com/ru/news/523753)

[3] BONK Sinks 12% as Meme Token Sector Faces Heavy Sell ... (https://www.coinglass.com/ru/news/523787)

[4] Bitcoin DIP to $110k or $141k BREAKOUT? What Will ... (https://www.binance.com/en/square/post/27650460924529)