Bitcoin News Today: Bitcoin Rises 13% in Month as Traders Watch Key Support Levels to Avoid 9% Correction

Bitcoin’s recent price surge has drawn intense scrutiny as traders and analysts closely monitor critical support levels that could determine the cryptocurrency’s near-term trajectory. The digital asset has climbed approximately 13% over the past month, reaching $118,090, but faces mounting pressure if it fails to hold key thresholds. Analyst DonAlt has highlighted the $108,000 level as a pivotal marker, warning that a breakdown could trigger a 9% correction. “Losing this level would signal something is going wrong,” he noted, urging investors to reassess positions if the price drops below this threshold [1].

Technical analysis further complicates the outlook. Captain Faibik, a prominent analyst, has raised concerns about a potential collapse below $100,000, citing a “rising wedge” pattern in Bitcoin’s price action—a bearish formation historically associated with downward momentum after a breakout [1]. Despite these warnings, Bitcoin has stabilized near $117,000, with traders pointing to institutional buying pressure as a stabilizing force. On-chain data suggests reduced liquidation risks compared to previous selloffs, though the asset remains trapped within a $117,000–$120,000 trading range [3]. A July 24 report noted Bitcoin’s retreat to $117,241 after a 2.3% decline, underscoring the fragility of its current consolidation phase [3].

Institutional demand remains a double-edged sword. DonAlt emphasized that sustained buying from corporations into their portfolios has been a key driver of Bitcoin’s resilience. However, a slowdown or cessation of such activity could introduce volatility and amplify selling pressure. “If companies cease purchasing, the uptrend ends, and prices could sharply decline,” he cautioned, acknowledging that while risks persist, those who bet on the trend still face rewarding opportunities [1]. This dynamic underscores the market’s reliance on macroeconomic signals, with treasury buying currently offsetting some risks but failing to push Bitcoin decisively above $120,000—a level viewed as both psychological and technical resistance [5].

The broader market context adds to the uncertainty. Altcoins like Ethereum and XRP have experienced significant declines, with Ethereum testing $3,515 support and XRP falling below $3.00 [4]. Weakness in these assets has raised concerns about capital rotation away from Bitcoin, potentially exacerbating downward pressure on the leading cryptocurrency. Meanwhile, on-chain metrics such as the STH realized price chart reveal key defense zones, though prolonged tests of $117,000 could erode investor confidence [2].

Analysts remain divided on whether the current consolidation signals a temporary pause or a precursor to a broader downturn. While some argue that treasury buying and short-term volatility suggest resilience, others warn that a failure to retest $120,000 may reinforce bearish narratives, particularly if macroeconomic conditions worsen. The interplay between technical patterns and macro-level indicators will likely dictate Bitcoin’s next move, with the coming days offering critical signals.

Investors are advised to monitor key support levels and institutional activity closely. A sustained rebound above $117,000 could pave the way for a retest of $120,000, while a breakdown would likely force strategic adjustments. As the market navigates this pivotal juncture, the outcome will shape broader sentiment in the cryptocurrency sector, making the next few weeks crucial for Bitcoin’s trajectory.

Source:

[1] [Bitcoin Faces Renewed Bearish Pressure as Analyst Warns 100k Collapse] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-faces-renewed-bearish-pressure-analyst-warns-100k-collapse-rising-wedge-pattern-2507/

[2] [Bitcoin STH Realized Price Chart Reveals Key Defense Zones] https://www.tradingview.com/news/newsbtc:f3c6a8aa8094b:0-bitcoin-sth-realized-price-chart-reveals-key-defense-zones-amid-volatility/

[3] [Bitcoin Holds Above Key $117K Support Amid Risk of Sharp Decline] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-key-117k-support-risk-sharp-decline-breakdown-occurs-2507/

[4] [Why Is Crypto Going Down? XRP, Dogecoin, Ethereum Prices Falling] https://www.financemagnates.com/trending/why-is-crypto-going-down-xrp-dogecoin-ethereum-and-bitcoin-prices-are-falling-today/

[5] [ChatGPT's BTC Analysis Flags $120K Test, Altseason Risk] https://cryptonews.com/news/chatgpts-42-indicator-btc-analysis-flags-critical-120k-test-amid-altseason-uncertainty-and-treasury-surge/