Quick overview

Live BTC/USD Chart

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Bitcoin dropped below $117,000, sparking debates about new market turbulence and shifting investor sentiment. The decline has triggered significant reactions across the cryptocurrency market, driven by institutional trading pressure and macroeconomic shocks.

This movement is linked to broader financial market trends, such as rising U.S. inflation data and the uncertainty surrounding potential Treasury actions related to Bitcoin.

The correction followed a recent peak of $124,517, dropping to $117,200 within a day. Over 218K traders were affected by the liquidation of more than $1 billion in leveraged positions during this period.

Institutional demand remains strong despite the sharp sell-off, with BlackRock’s iShares Bitcoin Trust (IBIT) adding over $500 million worth of Bitcoin in a single day, suggesting that institutional investors view the decline as a good entry point.

The combined ETF trade volumes of Bitcoin and Ethereum reached $11.5 billion, a liquidity level comparable to the daily trading volumes of major stocks. Technically, Bitcoin is forming a potential double-top pattern after pulling back from its cycle high, highlighting a possible disconnect between institutional accumulation strategies and retail-driven panic selling. While a breakdown below $117,000 could indicate a further decline toward $113,000–$115,000, a daily close above $119,500–$120,000 would suggest renewed bullish momentum.

The 4-hour chart indicates inconsistent buying pressure and waning momentum, along with lower highs.. All of the main EMAs and SMAs remain in bullish territory, confirming a generally upward trend. The macroeconomic environment has played a key role in Bitcoin’s recent performance.

Concerns were raised when the July Producer Price Index (PPI) revealed that inflation had risen to 3 percent year-over-year, exceeding forecasts.