Bitcoin News Today: Bitcoin Traders Await Breakout as 15% Volume Drop and 1.81% Open Interest Decline Signal Volatility Near $116K Support and $120K Resistance

Bitcoin’s price has formed a symmetrical triangle pattern, signaling potential volatility as traders await a breakout. The cryptocurrency currently hovers near $117,500, consolidating within a range defined by $116,000 support and $120,000 resistance [1]. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reflect neutral momentum, with RSI at 51 and MACD showing minimal divergence, reinforcing the market’s indecision [1]. This consolidation phase, characterized by a descending triangle pattern, aligns with an Elliott Wave framework, suggesting the possibility of an extended bullish trend if the price breaks above the $120,000 threshold [1].

The market cap of Bitcoin reached $2.33 trillion, with a 1.27% daily gain, as it approaches critical resistance levels. Supply metrics indicate that 19.89 million BTC are in circulation, nearing the maximum supply of 21 million, which analysts argue could enhance scarcity-driven demand [1]. However, volume data highlights caution, with a 15% drop in trading activity to $90.8 billion and open interest declining 1.81% to $84.22 billion, signaling reduced liquidity and leveraged positions [1].

Technical analyses point to conflicting signals. The Ichimoku Cloud suggests a bullish bias, as Bitcoin’s price remains above the cloud, historically associated with upward potential [3]. Immediate resistance levels at $118,800 and $119,300 could trigger a push toward $119,800 or $120,500 if breached [3]. Conversely, a breakdown below $118,000 risks retesting support at $117,500, with further declines possible toward $117,100 [3]. Analysts remain divided: bullish forecasts project a move toward $150,000 if the triangle pattern validates, while bearish warnings caution of a potential pullback below $115,724 [5][7].

The 4-hour chart reveals a tight tug-of-war near the triangle’s apex, where buyers and sellers are locked in a stalemate [4]. A decisive breakout above $118,800 could reignite upward momentum, whereas a breakdown below $118,000 may signal a bearish shift [4]. The broader market mirrors Bitcoin’s consolidation, with Ethereum and XRP exhibiting similar range-bound behavior. However, Bitcoin’s dominance remains critical, as its movement within the triangle pattern could influence risk appetite across the crypto ecosystem [4].

Market participants are also monitoring macroeconomic cues and regulatory updates, which could tip the balance once the pattern resolves. For now, the triangle acts as both a catalyst for volatility and a barrier to clarity, with the market in a holding pattern as it awaits a definitive catalyst for a directional move [4]. Traders are advised to remain vigilant, as a breakout could trigger rapid price swings either above or below the current consolidation range.

Sources:

[1] [Bitcoin News Today: Bitcoin Consolidates 120K 15 Volume Drop Technical Indicators Signal Impending Breakout](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-120k-15-volume-drop-technical-indicators-signal-impending-breakout-2507/)

[3] [Bitcoin Investor Price Model Signals Healthy Growth](https://www.mitrade.com/insights/news/live-news/article-3-978551-20250723)

[4] [Triangle — Trading Ideas on TradingView](https://www.tradingview.com/ideas/triangle/)

[5] [BTC Price Prediction: $150K in Sight as Technicals and...](https://www.btcc.com/en-IN/square/Bitcoin%20News/681582)

[7] [Are Traders Walking Into a Bitcoin Bull Trap at $118K?](https://www.mitrade.com/au/insights/news/live-news/article-3-982644-20250724)