Bitcoin News Today: Bitcoin Stalls Below $118000 Amid Short-Term Correction Risks

Bitcoin’s recent price action has sparked widespread speculation of a potential short-term correction before a long-term rally to $120,000. Industry figures and analysts, including Robert Kiyosaki, Master Ananda, and Elon Musk’s AI model Grok, have pointed to historical patterns and current market dynamics that suggest a dip could precede a significant upward move. Grok forecasts a price range between $114,000 and $120,000, citing parallels to past summer corrections in 2017 and 2021 before substantial rallies [1].

Bitcoin has been stalled below the $118,000 level, facing strong resistance at $115,000 and $118,000. Analysts suggest that the current consolidation could be a precursor to a pullback, especially with weakening ETF inflows and a lack of alternative demand observed at the end of July 2025 [2]. The recent decline in institutional buying activity has not been enough to counterbalance the selling pressure from short-term holders, who offloaded over 70,000 BTC at a loss following a recent all-time high [4].

The weakening U.S. dollar has historically supported Bitcoin’s price, but recent credit market signals indicate a growing level of caution among investors [5]. This could prevent a sustained rally toward $120,000, especially as large short positions are concentrated in the $118K–$120K range, posing a risk of a short squeeze if Bitcoin breaks through this level [8]. However, the fragile nature of recent rebounds in other major cryptocurrencies like ETH, XRP, BNB, and SOL raises concerns about the broader market’s ability to support a significant Bitcoin rally without stronger buying from both institutional and retail investors [1].

Despite these short-term challenges, some analysts remain optimistic about Bitcoin’s long-term trajectory. If Bitcoin manages to hold above $115,300, it could enter a price distribution phase into the $120K–$126K range [6]. Additionally, the recent Bitcoin halving in April 2024 reduced the annual inflation rate to 0.83%, making Bitcoin the scarcest asset in history, surpassing even gold [7]. While this fundamental improvement is viewed as a bullish factor for the future, it has not yet driven strong near-term price performance due to ongoing speculative selling and macroeconomic pressures.

Historical trends, such as the so-called "August curse," also play a role in shaping market sentiment. This pattern has historically seen price corrections in August, setting the stage for subsequent rallies [1]. Kiyosaki has publicly stated that he is preparing to increase his Bitcoin holdings if the market dips, reinforcing the strategic view that corrections could offer buying opportunities [1].

The market remains highly sensitive to macroeconomic conditions and technical indicators. Realized price data suggests that the current range-bound stability may not persist, and volatility is expected to continue in the near term [3]. While long-term bullish sentiment is still present, short-term caution is warranted as investors monitor ETF flows, institutional activity, and broader economic signals for further clarity.

Source:

[1] [Bitcoin News Today: Bitcoin Stalls Below $118000 Amid ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-stalls-118-000-short-term-correction-institutional-buying-2508/)

[2] [Bitcoin News Today: Bitcoin Price Falls on Weakening ETF ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-price-falls-weakening-etf-inflows-lack-demand-2508/)

[3] [Quicktake](https://cryptoquant.com/insights/quicktake)

[4] [Manuel - NOT price faces tough resistance at $0.002135 ...](https://m.facebook.com/manuel.guevarra.369210/photos/not-price-faces-tough-resistance-at-0002135-and-risks-a-breakdown-below-000188rs/738451839068027/)

[5] [Bitcoin (BTC) Crypto News Today](https://cointelegraph.com/tags/bitcoin)

[6] [BTC Structure Update (August 5)](https://www.facebook.com/groups/2820159****72964/posts/btc-structure-update-august-5the-classic-accumulation-manipulation-distribution/4051025995153007/)

[7] [Bitcoin Makes History By Becoming The Scarcest Asset In ...](https://cryptoweekly.co/news/bitcoin-makes-history-by-becoming-the-scarcest-asset-in-the-world/)

[8] [Pi Coin Crashes By 60% As Bybit CEO Chimes In](https://cryptoweekly.co/news/pi-coin-crashes-by-60-as-bybit-ceo-chimes-in/)