Bitcoin News Today: Bitcoin Trapped in $110k–$116k Range as Short-Term Profits Fall 30%

Bitcoin has entered a consolidation phase near $116,000, with on-chain data indicating that short-term holders are increasingly facing profit erosion and losses, signaling a cooling of speculative momentum [1]. The price decline below this critical resistance level has led to reduced leverage across the market and a drop in the profitability of short-term trading strategies [2]. According to recent analysis, the share of profits among short-term holders has fallen from 100% to 70%, a typical sign of a market correction within a broader bull cycle [3].

A recent price rebound, driven by purchases of approximately 120,000 BTC, briefly pushed Bitcoin above $114,000 but failed to overcome the resistance at $116,000. This suggests that demand remains insufficient to fuel a sustained breakout [4]. On-chain metrics, including ETF outflows and declining leverage, further reinforce the notion of a weakening bullish trend. On August 5, spot Bitcoin ETFs recorded the largest outflow since April 2025, with 1,500 BTC withdrawn from the system. Analysts suggest such outflows have historically been short-lived, but they do indicate a temporary shift in investor behavior [5].

Derivative markets also reflect a waning speculative appetite. Perpetual swap funding rates have stabilized in neutral territory, indicating fewer aggressive long positions and a growing uncertainty about near-term price direction [6]. This is consistent with a market in transition, where traders are waiting for clearer signals before committing capital.

Glassnode analysts have noted that the average entry price for short-term holders stands at $106,000, a level that historically acts as a psychological boundary between bullish and bearish phases. With Bitcoin currently trading within a compressed range between $110,000 and $116,000, the market remains in a state of equilibrium. A significant influx of new demand will be necessary for Bitcoin to break free and continue its upward trajectory [7].

On the technical front, the resistance zone near $116,000 has become a focal point for market participants. A successful breakout could pave the way for a move toward $120,000–$126,000, while a retest of support near $114,000 remains a likely scenario in the absence of decisive buying pressure. However, the inability to push above $116,000 has introduced uncertainty, with traders monitoring for signs of accumulation or distribution [8].

Analyst Ali Martinez has highlighted that Bitcoin’s weekly RSI has crossed below its 14-week SMA, a pattern historically followed by major corrections [9]. Similar signals in April and December 2024 led to declines of over $24,000. If history repeats, Bitcoin could face a 20% drop to $95,000. Conversely, other analysts remain cautiously optimistic. Jelle noted that Bitcoin has broken out of a bullish pennant and is currently retesting the 50-day EMA near $113,000–$114,000. A strong retest and continued strength above this level could lead to a move toward $130,000 [10].

The market is now at a critical juncture. Bitcoin has shown strong performance in 2025, reaching multiple all-time highs and climbing above key resistance levels. However, the recent pullback from the $123,000 high to around $114,000 underscores the fragility of the current trend. Short-term holders, who have seen their profit margins shrink, now face the risk of profit-taking or panic selling, especially if bullish momentum fails to return [11].

As the market waits for a clear direction, the psychological level of $115,000 remains in focus. A sustained move above this level could rekindle bullish sentiment, while a failure to hold could lead to further corrections. For now, Bitcoin continues to trade within a tight range, with liquidity and investor sentiment playing key roles in shaping the next phase of its price action [12].

Sources:

[1] Bitcoin Faces Resistance Near $116K as Short-Term Holder Profits Decline - https://coinpaper.com/10416/bitcoin-faces-resistance-near-116-k-as-short-term-holder-profits-decline

[2] The Week On-Chain - Week 31 2025 - https://insights.glassnode.com/the-week-onchain-week-31-2025/

[3] Bitcoin Settles Into $110k–$116k 'air gap' as Market Awaits ... - https://www.fastbull.com/news-detail/bitcoin-settles-into-110k116k-air-gap-as-market-4338606_0

[4] Bitcoin Slips Into Market Amnesia as Liquidity Dries Up - https://beincrypto.com/bitcoin-trapped-in-low-liquidity-air-gap/

[5] Bitcoin (BTC) Faces Post-ATH Challenges Amid Low ... - https://blockchain.news/news/bitcoin-btc-faces-post-ath-challenges

[6] Bitcoin Consolidates Near $115K as Traders Await Breakout - https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-115k-traders-await-breakout-2508/

[7] Bitcoin Could Drop to $95K as RSI Signals Repeating Pattern - https://thecryptobasic.com/2025/08/06/bitcoin-could-drop-to-95k-as-rsi-signals-repeating-pattern/