Bitcoin News Today: Bitcoin Stabilizes After Sharp Drop Amid Top 7% Bull Cycle Selling Pressure Eyes $118K Support

Bitcoin saw heightened volatility on Friday as it briefly dropped to around $114,700 before stabilizing within a tight consolidation range. Despite the pullback, the price remains capped below the psychological $120,000 threshold, with bulls and bears locked in a tug-of-war that has intensified speculation about the market’s next move. The asset’s resilience is evident in its ability to hold key support levels, which suggests the current bullish structure has not been fundamentally compromised [1].

CryptoQuant analyst Axel Adler highlighted that this week ranks among the top 7% of the most aggressive selling periods during the current bull cycle. Only 12 weeks—approximately 7.3% of the total cycle—have shown equal or greater selling pressure, underscoring the intensity of the recent market activity [1]. While significant profit-taking has occurred, the price has not fully broken down, leaving uncertainty about whether this is a temporary correction or a more sustained downturn.

The combination of heavy selling and price stability has created a pivotal moment for Bitcoin. Analysts are closely monitoring whether buyers can maintain the consolidation range, which spans between $115,724 and $122,077. A successful defense of this range could set the stage for a renewed push toward the $120,000 barrier, while a breakdown might trigger further downward pressure. The 100-period simple moving average (SMA) at $117,822 has become a critical level to watch, as Bitcoin’s ability to flip this metric and hold above $118,000 could signal bullish momentum [1].

Bitcoin’s dominance in the cryptocurrency market is also showing signs of weakening relative to Ethereum and other major altcoins. This shift has drawn attention from analysts who suggest it could mark the beginning of an "altseason," where capital rotates from Bitcoin into alternative cryptocurrencies. A continued decline in Bitcoin’s market share, paired with growing strength in altcoins, could drive broad-based gains across the sector [1].

The Index Bitcoin Cycle Indicator, tracked by CryptoQuant, has identified this week as the third instance of a bearish correction within the current bull cycle. While the index is a tool for identifying cyclical patterns, its readings reinforce the need for caution among investors navigating heightened volatility [4]. The Bonk Fear and Greed Index further highlights the bearish sentiment, with elevated fear levels reflecting the struggle to push past key support thresholds [8].

Despite the short-term turbulence, Bitcoin’s recent recovery to $117,000 by week’s end has been interpreted as a positive sign. This rebound, attributed to strong buying interest, indicates that the asset’s bullish momentum may not be exhausted. However, prolonged indecision could invite renewed selling pressure, particularly if macroeconomic factors or regulatory developments introduce new headwinds. The market’s next major test will depend on whether Bitcoin can sustain its consolidation above $118,000 and reclaim the $122,077 resistance level [1].

The broader implications of this week’s volatility extend beyond technical analysis. Discussions about Bitcoin’s role in a "super bull market" narrative remain divided, with some analysts emphasizing its long-term potential despite short-term challenges [7]. Meanwhile, comparisons to traditional asset cycles highlight the unique nature of cryptocurrency markets, which often experience sharper and more abrupt corrections due to speculative trading dynamics [3].

As the week closes, the focus remains on Bitcoin’s ability to stabilize within its defined range. A successful defense of key levels could reignite market confidence and pave the way for a new wave of buying pressure. Conversely, a breakdown below $115,724 may signal a deeper correction, forcing traders to reassess the trajectory of the current bull cycle [1].

Sources:

[1] [Bitcoin Endures One Of The Most Intense Bear Weeks Of This Bull Cycle – Details] https://www.newsbtc.com/bitcoin-news/bitcoin-endures-one-of-the-most-intense-bear-weeks-of-this-bull-cycle-details/

[3] [We've Witnessed U.S. Money Supply Make History on Both ...] https://www.aol.com/weve-witnessed-u-money-supply-070600884.html

[4] [Real-Time Crypto News, Latest Cryptocurrency Updates ...] https://www.coinglass.com/news

[7] [Consuelo Mack WealthTrack | All Show Broadcast Times] https://nhpbs.org/schedule/series.aspx?progName=Consuelo+Mack+WealthTrack

[8] [Bonk Fear and Greed Index | Multiple Timeframes] https://cfgi.io/bonk-fear-greed-index/