Bitcoin Price Drops to $117K as BTC Tests Support After $123K All-Time High

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Bitcoin Price Drops to $117K as BTC Tests Support After $123K All-Time High - Blockchain.News

Quick Take

• BTC currently trading at $117,010.61 (-0.94% in 24h) • Bitcoin's RSI at 61.93 suggests consolidation after recent rally • Profit-taking emerges following geopolitical tensions and record high achievement

What's Driving Bitcoin Price Today?

The BTC price has retreated from recent highs as traders digest a week of extraordinary volatility. Bitcoin fell below $118,000 on July 19th, marking a 0.70% decline as the market experienced fluctuations following its spectacular run to over $123,000.

This recent decline stems primarily from profit-taking behavior after Bitcoin achieved an all-time high of $123,153.22 on July 14th. The pullback accelerated when President Trump threatened 100% tariffs on Russia, introducing geopolitical uncertainty that prompted investors to secure gains from Bitcoin's remarkable rally.

Despite the current correction, the broader narrative remains constructive. The surge to record levels was fueled by institutional demand during the U.S. Republican-declared "crypto week," which focused on potential regulatory advancements. The U.S. House passed several pro-cryptocurrency bills, including the Genius Act for stablecoin regulation, providing fundamental support for Bitcoin's long-term trajectory.

Institutional adoption continues to strengthen Bitcoin's foundation. Semler Scientific recently invested $25 million to acquire an additional 210 BTC on July 17th, raising their total holdings to 4,846 BTC. This corporate treasury strategy reflects growing institutional confidence, with significant inflows into Bitcoin ETFs supporting the underlying demand structure.

Bitcoin Technical Analysis: Mixed Signals Emerge

Bitcoin technical analysis reveals a complex picture as BTC consolidates after its parabolic move. The BTC RSI sits at 61.93, positioned in neutral territory but leaning toward overbought conditions. This suggests Bitcoin may need additional time to digest recent gains before resuming its upward trajectory.

The MACD indicator shows bearish momentum developing, with the MACD line at 2882.82 sitting below the signal line at 2938.74. The negative histogram reading of -55.92 confirms this bearish divergence, indicating short-term selling pressure may persist.

Bitcoin's moving averages paint a bullish picture across longer timeframes. The current BTC price of $117,010 trades above all major moving averages, including the 7-day SMA at $117,943, 20-day SMA at $114,386, and significantly above the 200-day SMA at $97,944. This alignment suggests the underlying trend remains very strong bullish despite near-term consolidation.

The Bollinger Bands provide additional context for Bitcoin's current position. With the upper band at $123,360 and lower band at $105,412, Bitcoin's %B position of 0.6462 indicates the BTC price is trading in the upper portion of the band, though not yet at extreme levels that would signal immediate reversal.

Bitcoin Price Levels: Key Support and Resistance

Bitcoin support levels have become critical as the BTC price navigates this consolidation phase. The immediate Bitcoin support sits at $105,100, representing a significant level where buyers previously emerged. Below this, strong Bitcoin support lies at $98,200, which aligns closely with psychological round numbers and previous resistance-turned-support zones.

On the upside, BTC resistance remains formidable at $123,218, representing the area where Bitcoin achieved its all-time high. This level coincides with the recent peak and will likely require substantial volume and momentum to breach convincingly.

The daily ATR of $2,896 indicates elevated volatility remains present in Bitcoin, suggesting traders should expect continued price swings of nearly $3,000 in either direction during normal trading sessions.

Based on Binance spot market data, the BTC/USDT pair has maintained relatively healthy trading volume at $2.24 billion over the past 24 hours, indicating sustained interest despite the recent pullback.

Should You Buy BTC Now? Risk-Reward Analysis

For aggressive traders, the current BTC price presents a potential accumulation opportunity near the 7-day moving average. The risk-reward setup favors buyers who can tolerate near-term volatility, with Bitcoin support at $105,100 providing a reasonable stop-loss level approximately 10% below current prices.

Conservative investors may prefer waiting for a deeper retracement toward the $105,000-$109,000 zone, where the 50-day moving average and immediate support converge. This approach would offer better risk-adjusted entry points while maintaining exposure to Bitcoin's longer-term institutional adoption theme.

Day traders should monitor the BTC RSI closely for oversold conditions below 40, which could signal short-term bounce opportunities. The current reading of 61.93 suggests additional downside may emerge before presenting optimal entry points for short-term strategies.

Institutional investors can view current weakness as a natural consolidation following Bitcoin's 60% advance from its 52-week low of $76,322. The fundamental backdrop of regulatory clarity and corporate adoption remains intact, supporting higher Bitcoin price targets over multi-month timeframes.

Conclusion

Bitcoin's retreat to $117,010 represents healthy profit-taking following an extraordinary rally to record highs above $123,000. While short-term Bitcoin technical analysis shows mixed signals with bearish MACD momentum offset by strong moving average support, the overall trend remains very strong bullish. Traders should monitor Bitcoin support levels at $105,100 and $98,200 for potential accumulation opportunities, while the BTC price needs to reclaim $123,218 resistance to resume its upward trajectory. The next 24-48 hours will likely determine whether Bitcoin continues consolidating or breaks toward new all-time highs as institutional demand and regulatory optimism provide fundamental support.

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