Bitcoin News Today: Bitcoin Trapped in $117K Range Amid $100B Market Cap Slide After 2.7% Drop

Bitcoin remains in a tight trading range near $117,467, caught between critical technical levels as investors await a decisive move higher or lower. The cryptocurrency has oscillated within a $4,300 band between $114,200 and $118,500, reflecting indecision among market participants following a sharp correction from its recent rally. While bulls eye a potential breakout above $118,250 to target $119.5K and the $120,000 psychological level, bears maintain control near-term, with sellers dominating below $116,500 [1].

Technical indicators paint a mixed picture. The 4-hour chart shows Bitcoin hovering near its 50-period ($117,689) and 34-period ($118,094) simple moving averages, while Bollinger Bands indicate tightening volatility after a sharp pullback. Key support levels are defined at $116,100 and $115,400, with a breakdown below $116,500 threatening a slide toward $114,200 and potentially $112,000. Conversely, a sustained push above $118,250 could reignite upward momentum [1].

Recent price action underscores the fragility of the current range. A 2.7% drop on July 25 breached the $117,261 consolidation level, triggering $700 million in liquidations of leveraged long positions and a $100 billion erosion in crypto market capitalization. XRP alone saw $89 million in single-day liquidations during the selloff, though analysts attribute the decline primarily to profit-taking rather than a systemic bearish shift [2]. Volume data reveals uneven buying pressure, with red volume bars dominating during declines despite occasional rebound attempts.

The broader market reflects similar uncertainty. Crypto’s total market cap has fallen to $3.72 trillion, having pierced support levels at $3.80 trillion and $3.73 trillion. Further selling could push the cap toward $3.61 trillion if short-term liquidity challenges persist. Meanwhile, liquidity remains concentrated in traditional assets rather than flowing into riskier crypto holdings, despite record U.S. M2 money supply reaching $22.02 trillion [2].

Analysts caution that the current correction serves as a necessary recalibration after Bitcoin’s 33% rally from late June. However, leveraged positions remain vulnerable to further volatility. Ethereum faces validator exit pressure as $2.3 billion in unstaking ETH looms, while Bitcoin’s institutional demand—evidenced by MicroStrategy’s $2 billion STRC offering—suggests underlying long-term confidence [2].

The path forward hinges on Bitcoin’s ability to reclaim key resistance at $118,000. Failure to hold above $116,500 could deepen the correction, while a sustained breakout above $120,000 might rekindle bullish momentum. For now, the market remains in a standoff, balancing bearish technical signals with macroeconomic optimism about eventual institutional adoption.

Sources:

[1] [Bitcoin Trade Ideas — BITSTAMP:BTCUSD](https://in.tradingview.com/symbols/BTCUSD/ideas/?exchange=BITSTAMP)

[2] [Why is Crypto Down Today? Here's What You Need to Know](https://coincentral.com/why-is-crypto-down-today-heres-what-you-need-to-know-2/)