Bitcoin News Today: Bitcoin Trapped in $116K–$120K Range Amid 1.7% Daily Drop as Macroeconomic Events Loom

Bitcoin (BTC) remains in a tight trading range near $118,500, with analysts closely watching for a catalyst to break the stagnation. The cryptocurrency has oscillated between $116,000 and $120,000 this week, failing to establish clear momentum amid heightened market anticipation of macroeconomic developments [1]. Recent price action reflects a tug-of-war between buyers and sellers, with BTC briefly reclaiming $119,000 before retreating to current levels.

The price trajectory has been marked by sharp intraday volatility. After surging past $120,000 and hitting a record high of $123,091 last week, BTC faced a rapid pullback to an intraday low of $115,701. While the asset has since recovered to hover around $117,000-$119,000, it remains vulnerable to sharp corrections. Traders noted a 1.7% decline on a single day and a 0.48% drop over the weekend, underscoring the fragile balance between bullish and bearish forces. Analysts highlight that liquidity clusters above the current price—confirmed by data from CoinGlass—could amplify short-term volatility, as market participants react to imbalances in supply and demand [1].

Market observers are paying particular attention to Bitcoin’s dominance metric, which climbed to 62%, signaling a potential shift in market dynamics. Some analysts argue this trend supports the likelihood of a short squeeze, given the accumulation of overhead liquidity. “Bitcoin liquidity is piling up on the topside. A massive short squeeze is inevitable!” stated one trader, emphasizing the risk for late entrants in a market prone to abrupt directional moves [1]. Another trader added that key support and resistance levels—$115,000 and $120,000—will likely determine the next phase of price action, with a breakthrough expected to clear either level before the year-end [1].

The broader macroeconomic environment has added complexity to BTC’s outlook. Edul Patel, co-founder and CEO of Mudrex, warned that the final days of July could be pivotal, with events such as the FOMC meeting, U.S. Treasury borrowing plans, and President Trump’s tariff proposals poised to influence market sentiment. Felix Juavin, host of Forward Guidance, echoed this view, noting that the Supreme Court’s deliberation on the legality of executive orders for tariffs and the QRA meeting will shape policy clarity. “The last few days of July will set the stage for markets for the rest of the year,” he stated, cautioning that decisive moves will likely emerge only after these events unfold [1].

While the immediate outlook remains range-bound, historical patterns suggest BTC could test critical thresholds in the coming weeks. The cryptocurrency has shown resilience amid macroeconomic uncertainty, but the absence of a clear catalyst continues to weigh on its ability to break out of the $116,000-$120,000 range. Investors are advised to monitor liquidity dynamics and institutional activity, particularly as major firms like Genius Group expand their BTC holdings and London-based Satsuma Technology sets a national record for Bitcoin treasury raises [1].

Source: [1] [Bitcoin Price Analysis: BTC Struggles To Gain Momentum, Hovers Around $118,500] [https://bitzo.com/2025/07/bitcoin-price-analysis-btc-struggles-to-gain-momentum-hovers-around-118500]