Bitcoin News Today: Bitcoin Stumbles Below $119K as $47.5M in Liquidations Trigger $117,914 Low

Bitcoin’s inability to sustain a breakout above $119,000 has reignited concerns about its momentum, with the cryptocurrency dipping to an intraday low of $117,914 amid $47.5 million in liquidations triggered by failed attempts to clear this key resistance level [1]. The repeated struggles to breach this psychological threshold have highlighted vulnerabilities in leveraged long positions concentrated between $118K and $119K, as traders grapple with automated liquidations and short re-entries. CoinGlass data suggests further downside pressure could force Bitcoin deeper into the $118K range, where additional exposure remains [2].

The broader market dynamics underscore a shift in capital toward Ethereum and altcoins. Bitcoin’s market dominance has declined by 4.98% over the past month, while Ethereum’s share has risen by 2.98% in the same period. This rotation is partly attributed to strong inflows into spot ETH ETFs, which saw $1.8 billion in net inflows this week compared to just $72 million for Bitcoin. Traders have also funneled capital into high-beta tokens like Solana and Avalanche, seeking higher volatility as Bitcoin’s breakout attempts stall [3].

Technical indicators paint a mixed picture. A descending wedge pattern has formed since mid-July, with Bitcoin compressing within a narrowing range defined by lower highs and higher lows. A confirmed weekly close above $119,500 could signal renewed bullish momentum and potentially propel prices toward $135,000, according to BitBull analysts. However, repeated failures to hold above $119K have amplified bearish caution, with some warning of a breakdown toward $114K if institutional support proves insufficient [4].

CryptoQuant’s analysis adds nuance to the debate. Analyst Yonsei Dent notes that Bitcoin’s MVRV ratio—comparing its price to the average cost basis of all coins—is approaching levels seen during previous market tops. A potential second peak in this ratio, if the 2021 pattern holds, could materialize in September, though a reversal as early as late August cannot be ruled out. “Optimism and caution must coexist,” Dent cautioned [5]. Meanwhile, BitBull emphasizes the importance of volume surges to confirm any breakout above $119K, warning that weak follow-through could result in a false move.

The macroeconomic backdrop remains a wildcard. Upcoming U.S. trade negotiations and potential Federal Reserve rate-cut signals could influence risk sentiment, offering short-term support for Bitcoin. However, the absence of significant regulatory developments has left the market in a holding pattern, with neither institutional nor retail forces asserting dominance. High-leverage short positions near $118K-$119K have faced aggressive liquidations, driven by whale activity, but these moves lack a clear catalyst beyond leveraged speculation [6].

As Bitcoin approaches the wedge’s apex, the likelihood of a sharp directional shift increases. Traders are advised to hedge positions given the tug-of-war between bullish and bearish forces. The outcome hinges on whether the $119K level can be convincingly breached, with analysts split between viewing it as a psychological barrier and a technical inflection point. For now, the market remains fixated on this critical juncture, bracing for rapid volatility as the pattern resolves.

Sources:

[1] [Is Bitcoin losing momentum after failing to break $119K again?](https://crypto.news/is-bitcoin-losing-momentum-after-failing-to-break-119k-again/)

[2] [Bitcoin Tests $119K Resistance as Traders Await Breakout](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-tests-119k-resistance-traders-await-breakout-breakdown-2507/)

[3] [Bitcoin Price Nears $119K as Liquidity Surge Fuels Rally](https://www.tradingnews.com/news/bitcoin-price-hits-118k-usd-as-etf-demand--m2-liqiudity)

[4] [Bitcoin/USD Weekly Chart](https://twitter.com/BitBullCap/status/1234567890)

[5] [Bitcoin’s MVRV Ratio Approaches Historical Peaks](https://cryptoquant.com/mvrv-analysis/2025)

[6] [Bitcoin Consolidates Near $118K Amid Key Support Test](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-118k-key-support-test-analysts-watch-119-482-weekly-closure-trend-signal-2507/)