Bitcoin News Today: Bitcoin Slumps Below $118,000 Amid 2.37% Volume Surge, Analysts Warn of 50% Correction

Bitcoin temporarily fell below $118,000 on July 24, according to HTX market data, with the cryptocurrency trading at $118,001 at the time [1]. This marked a reversal from earlier gains driven by institutional accumulation, which had previously pushed BTC to hover near $118,000 amid a 2.37% surge in trading volume [2]. Over the prior weeks, Bitcoin had experienced significant volatility, including a 11% decline from its highs near $123,000 to below $118,000 on July 6 [3]. By July 24, the price had partially rebounded to $118,044.80 at 02:59 [5].

Analysts offered diverging assessments of the market’s trajectory. Tony Severino, a crypto analyst, warned of a potential 50% correction if Bitcoin failed to surpass its all-time high. He cited an "Expanded Flat" correction pattern in Elliott Wave theory, suggesting the current rally could represent a deceptive wave B before a steep wave C decline to as low as $60,000 [7]. This scenario draws parallels to Bitcoin’s 2021–2022 cycle, where a similar pattern preceded a deep bear market. Conversely, "The Crypto Professor" forecast a potential new all-time high near $129,948 based on the 1.618 Fibonacci Extension level. Strong support at $110,000 and $100,000 was highlighted as potential buffers for short-term declines [7]. Institutional buying pressure and consolidation above key support levels were viewed as signs of resilience [2]. Both analysts agreed the next few weeks would be pivotal: sustained movement above $123,000 could reignite bullish momentum, while failure to do so might trigger a deeper correction.

Technical indicators provided mixed signals. Traders noted liquidity clusters above the current price, raising the possibility of a short squeeze if long positions gained strength [4]. On-chain metrics revealed a narrowed 0.14% increase in 24-hour price action on July 21, indicating reduced volatility compared to earlier selloffs [10]. Critical support levels at $115,000 and $112,500 were identified as thresholds for maintaining stability [9]. Recent price fluctuations, including a brief dip below $118,000 on July 21 [10] and a recovery to $118,759 by July 11 [9], underscored the asset’s sensitivity to macroeconomic pressures and regulatory developments [3].

Investors were advised to closely monitor key resistance and support levels, as the balance between institutional accumulation and short-term profit-taking would likely dictate near-term movements. The market’s uncertainty remains pronounced, with analysts split on whether the current correction reflects a temporary setback or the early stages of a larger bearish phase.

Source:

[1] [Bitcoin (BTC) temporarily gives up the $118000 mark] (https://bloomingbit.io/en/feed/news/93436)

[2] [Bitcoin Hovers Near $118000 Amid 2.37% Volume Surge ...] (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-hovers-118-000-2-37-volume-surge-institutional-accumulation-2507/)

[3] [Bitcoin News Today: Bitcoin Falls Below $118,000 with 0.71% 24-Hour Drop Amid ...] (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-118-000-macroeconomic-pressures-regulatory-uncertainties-drive-correction-2507/)

[4] [Is Bitcoin on the Verge of a Brutal Short Squeeze?] (https://www.tipranks.com/news/is-bitcoin-on-the-verge-of-a-brutal-short-squeeze)

[5] [Bitcoin (BTC) temporarily recovers the $118000 level] (https://bloomingbit.io/en/feed/news/93430)

[7] [Bitcoin Faces 50% Crash Risk, Analyst Warns] (https://thecurrencyanalytics.com/bitcoin/bitcoin-faces-warning-of-50-crash-if-no-new-all-time-high-soon-186981)

[9] [Bitcoin Price at $118759 Signals Calm Before the Surge] (https://www.analyticsinsight.net/bitcoin/bitcoin-price-at-118759-signals-calm-before-the-surge)

[10] [Bitcoin Market Sees Unusual Coin Days Destroyed Ratio ...] (https://www.binance.com/en/square/post/27361803872993)