Bitcoin News Today: Bitcoin Tumbles 6.5% Amid Weak $110K–$116K Support Zone

Bitcoin remains in a precarious position as it attempts to stabilize near key support and resistance levels following a recent pullback from its mid-July high of $123,000 to around $114,000. Analysts are closely monitoring whether the $112,650 support level can hold, as this would signal continued buyer confidence in the current price range [1]. Recent on-chain data indicates that roughly 120,000 BTC were accumulated during the rebound from $112,000 to $114,000, suggesting that some investors viewed the dip as an opportunity to buy [1]. However, the $110K–$116K zone remains structurally weak, with insufficient volume and demand to establish a robust support floor [1].

While retail inflows have shown some strength, larger whale activity has turned increasingly bearish, casting doubt on the sustainability of the current bullish momentum [2]. This divergence in market sentiment has led to a fragile environment where volatility remains a key risk. Institutional support, however, has not completely faded. Analysts at Mitrade note that Bitcoin’s position above key support levels suggests that its technical foundation is still intact, despite recent ETF outflows [6].

The $114,000 level is currently a critical resistance point that could determine Bitcoin’s short-term trajectory [5]. Avinash Shekhar, Co-Founder & CEO of Pi42, highlighted that a breakout above this level could open the door for further gains, while a breakdown might lead to renewed downward pressure. The lack of strong conviction in the $110K–$116K range is evident from thin trading volumes and weak price reactions, raising concerns that a retest of lower levels could trigger further selling [4].

Market liquidity is also a point of concern. The current price range is characterized by low liquidity, which increases the likelihood of sharp and unpredictable price swings [4]. Without a sustained increase in buying pressure—potentially driven by institutional interest, retail FOMO, or favorable macroeconomic conditions—this zone is unlikely to serve as a reliable support area [1]. Analysts from the on-chain data firm Glassnode have emphasized that while the buying volume observed during the recent rebound is significant, it falls short of what is needed to create a long-term stronghold [1].

The broader crypto market is also feeling the effects of Bitcoin’s consolidation. As Bitcoin struggles to find direction, investors are increasingly shifting attention to altcoins in search of higher-risk opportunities [7]. However, until Bitcoin regains a clear bullish bias, the market is expected to remain fragmented and uncertain.

Sources:

[1] https://coinmarketcap.com/community/articles/68986ec6d3f2f1289a153007/

[2] https://beincrypto.com/btc-price-rally-nears-end-as-whales-sell/

[3] https://www.ainvest.com/news/bitcoin-reaches-117-000-policy-moves-spark-interest-analysts-warn-technical-resistance-2508/

[4] https://thecurrencyanalytics.com/altcoins/btc-faces-pressure-in-low-liquidity-zone-as-market-drifts-post-ath-189481

[5] https://www.msn.com/en-in/money/markets/bitcoin-holds-above-114-500-experts-see-breakout-potential-amid-rising-inflows/ar-AA1K45ny

[6] https://blockchain.news/news/20250810-bitcoin-btc-holds-above-117k-despite-recent-etf-outflows-technical

[7] https://www.mitrade.com/au/insights/news/live-news/article-3-1026759-20250810