Bitcoin News Today: Bitcoin tests $114,659 level amid miner selling and bullish technical setup

Bitcoin is currently at a critical juncture as it retests the 0.786 Fibonacci level near $114,659 [1]. Analysts suggest that a breakout above $120,000 could trigger a rapid rally toward price targets of $130,000 to $226,492 [1]. This retest coincides with the so-called “Yellow Box” zone, identified by Egrag Crypto on July 21 as a potential turning point in Bitcoin’s movement [1]. The asset has been consolidating near this level, with the possibility of a sharp upward move that could catch many traders off guard [1].

The recent price correction has seen Bitcoin fall by approximately $10,500 within days, from near $123,218 to around $112,722 [1]. This 2.5% decline has raised questions about whether this represents a final phase in Bitcoin’s price trajectory. Analysts have noted that historical breakout patterns and Fibonacci extensions suggest a bullish continuation is still possible, despite the short-term volatility [1].

Miner behavior adds a layer of caution to the current market environment. According to data shared by analyst Ali, Bitcoin miner reserves dropped from 1,809,818 BTC on July 16 to 1,806,987 BTC by August 1, a reduction of 2,831 BTC [1]. This decline aligns with a $5,405 price drop during the same period, indicating increased selling pressure as miners offload coins to cover operational costs [1]. This activity has contributed to a weakening of the immediate bullish trend, with the price testing support below $113,000 [1].

Despite these bearish signals, the broader trend remains skewed toward a continuation of the upward movement. Previous breakout phases, such as a notable 135.99% move from a wedge formation, support this view [1]. If Bitcoin can maintain a position above $120,000, the price could target levels at $130,000, $176,000, and $226,134 [1]. These Fibonacci-based projections represent key psychological and technical levels that could attract institutional and retail interest alike.

The current retest is viewed as a pivotal moment in Bitcoin’s price cycle. Analysts emphasize that while the short-term outlook may be clouded by miner selling and volatility, the structural setup remains supportive of a bullish continuation [1]. However, as with any market, the outcome remains uncertain, and the final direction of Bitcoin’s price will depend on how it performs in the coming days [1].

Source: [1] Binance (https://www.binance.com/en/square/trending)