Bitcoin Drops Below $118,000 as Doge Retreats Up to 5.5%
From a technical standpoint, analysts at FXLeaders observe that Bitcoin is currently in a consolidation phase.
Quick overview
- The cryptocurrency market experienced a downturn, with Bitcoin dropping 1.1% and Ethereum falling 1.4%.
- Altcoins faced larger losses, particularly Dogecoin, which decreased by 5%, while Tron was one of the few to gain, rising 0.4%.
- Geopolitical developments included a new U.S.-EU trade agreement and ongoing U.S.-China negotiations, impacting market sentiment.
- Institutional interest in Bitcoin remains strong, with significant investments and transfers from long-term holders to new players.
The cryptocurrency market reversed course after a modest start to the final week of July. Bitcoin (BTC) dropped 1.1% to $117,651, according to Binance, while Ethereum (ETH) fell 1.4% to $3,774.13.
Altcoins saw steeper losses, led by Dogecoin (DOGE), which dropped 5%. Ripple (XRP) fell 3.1%, and Solana (SOL) declined 2%. Meanwhile, BNB (BNB) edged down 0.3% to $825.91, although it’s up 9.2% over the past week. Tron (TRX) was among the few exceptions, rising 0.4% to $0.3217.
Geopolitical Drivers in Focus: EU Deal and China Truce
Markets responded to major geopolitical developments. The U.S. and European Union formalized a new trade agreement that imposes a 15% tariff on EU goods entering the U.S., while European authorities pledged not to impose new duties on American products.
The deal also includes European commitments to purchase $750 billion in U.S. energy and $650 billion in American military equipment, marking a significant realignment of global trade flows.
At the same time, U.S. and Chinese officials met in Stockholm for a third round of trade negotiations. Treasury Secretary Scott Bessent confirmed that both sides are working toward extending their tariff truce, currently set to expire on August 12, by another 90 days.
In a conciliatory move, Washington also temporarily eased restrictions on AI chip exports to China, paving the way for a potential meeting between Presidents Donald Trump and Xi Jinping.
Institutional Moves and BTC-Linked Instruments
On the institutional front, Bitcoin continues to solidify its status as a strategic financial asset. Investment firm Strategy issued a variable-dividend preferred share (STRC) to fund further BTC purchases. Initially set at $500 million, the offering was increased to $2 billion due to overwhelming demand.
Meanwhile, Japan’s Metaplanet acquired an additional 780 BTC last week, bringing its total holdings to 17,132 BTC—valued at roughly $2 billion. The company uses a proprietary “BTC Yield” metric to measure share price impact, which stood at 129.4% in Q2, up from 95.6% in the previous quarter.
Adding to the momentum, several long-dormant Bitcoin wallets—some inactive for over 14 years—transferred around $2 billion worth of BTC, with some of the funds reportedly headed to Galaxy Digital. Analysts interpret this as a reallocation from long-term holders to new institutional players.
Technical Analysis: Key Support and Resistance Levels
From a technical standpoint, analysts at FXLeaders observe that Bitcoin is currently in a consolidation phase. Immediate support is seen in the $115,000–$116,000 range, while resistance lies between $120,000 and $122,000. A breakout above that resistance zone could open the path toward $130,000.
Conversely, a drop below $115,000 would signal the potential for a deeper correction, with $110,000 identified as a critical support level.
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