Bitcoin News Today: Bitcoin Slides Below $116,000 as Market Bears Intensify

Bitcoin continues to face downward pressure as it remains below the crucial $116,000 resistance level, triggering caution among global investors. The cryptocurrency dipped to $114,714 on August 2, struggling to stabilize above key thresholds that could indicate a potential rebound [1]. This decline has been attributed to a combination of macroeconomic risks, seasonal patterns, and a lack of significant institutional influence, despite large-scale purchases by firms like Strategy, which acquired 21,021 BTC at $117,256 each [2].

According to Matrixport analysts, Bitcoin typically experiences dips during the mid-summer months, a trend seen in past years when negative U.S. economic data triggered sell-offs. This year, the delay in expected Federal Reserve rate cuts has intensified selling pressure, contributing to the recent pullback [3]. Although the current move below $116,000 does not represent a clear trend reversal, it has created technical challenges for the market.

Market indicators reflect a bearish sentiment. Bitcoin’s Relative Strength Index (RSI) remains below the neutral zone, suggesting continued downward pressure [4]. Additionally, the supply in profit hit a 41-day low at $113,000 on August 2, signaling that more holders are now in the red, which could precede further price weakness [5]. This metric, which measures the percentage of Bitcoin held in profitable positions, is considered a bearish sign by market observers.

Derivatives activity also highlights the fragility of the current market structure. Traders are reportedly exiting leveraged positions due to concerns over volatility, which underscores a lack of confidence in Bitcoin’s ability to attract new buyers in the near term [6]. While some analysts suggest that a deteriorating U.S. labor market could eventually drive capital toward alternative assets like Bitcoin, this scenario remains speculative [7].

Despite the immediate challenges, a few analysts remain cautiously optimistic, pointing to historical precedents where sharp price declines have eventually led to strong rebounds [8]. However, this view contrasts with the current technical and market signals, which indicate a lack of strong support for a near-term reversal.

Overall, Bitcoin is at a critical juncture as it battles for stability in a volatile environment. A slight price bounce has raised some hopes for a reversal, but it remains unclear whether this is a meaningful shift or merely a temporary respite before further correction. Investors and traders are advised to closely monitor key resistance levels and watch for signs of sustained buying pressure that could signal a change in market dynamics.

Source:

[1] Mitrade – [https://www.mitrade.com/insights/crypto-analysis/bitcoin/beincrypto-BTCUSD-202508041526](https://www.mitrade.com/insights/crypto-analysis/bitcoin/beincrypto-BTCUSD-202508041526)

[2] CoinMarketCap – [https://coinmarketcap.com/community/articles/68907b37f66ec432fbcd02e1/](https://coinmarketcap.com/community/articles/68907b37f66ec432fbcd02e1/)

[4] CoinCentral – [https://coincentral.com/why-is-crypto-up-today-lets-dive-in-2/](https://coincentral.com/why-is-crypto-up-today-lets-dive-in-2/)

[5] BeInCrypto – [https://beincrypto.com/bitcoin-supply-in-profit-drops-price-faces-risk/](https://beincrypto.com/bitcoin-supply-in-profit-drops-price-faces-risk/)

[6] FastBull – [https://m.fastbull.com/en/news-detail/bitcoin-drops-below-115k-as-traders-rush-to-news_6100_0_2025_3_6360_3](https://m.fastbull.com/en/news-detail/bitcoin-drops-below-115k-as-traders-rush-to-news_6100_0_2025_3_6360_3)

[7] Mitrade – [https://www.mitrade.com/au/insights/news/live-news/article-3-1009116-20250804](https://www.mitrade.com/au/insights/news/live-news/article-3-1009116-20250804)

[8] Yahoo Finance – [https://finance.yahoo.com/news/6-best-times-buy-bitcoin-213407410.html](https://finance.yahoo.com/news/6-best-times-buy-bitcoin-213407410.html)