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- Bitcoin’s recent dip below $112K may be nothing more than a short-term wobble if long-standing demand holds and macro dynamics.
- Several factors are in play that could give Bitcoin a push to $116k this week and even beyond $120k.
Ali Martinez shared on X that more than 60% of traders on Binance Futures are currently bullish on Bitcoin (BTC), reflecting strong market sentiment.
Interestingly, Bitcoin’s latest achievement isn’t about its price; it’s about mining difficulty, which just hit a record 127.62 trillion, the highest level ever recorded.
Meanwhile, Bitcoin is trading around $114,300, up 0.48% in the past 24 hours, giving it a market cap of $2.2 trillion. Now, all eyes are on key events this week that could shape Bitcoin’s next move and keep investors on their toes.
1. Bitcoin Dipped Below $112K — Is a $116K Bounce Coming?
Yesterday, Bitcoin briefly dipped below $112K and touched $111,0000. It then quickly rebounded toward the $115K–$116K range, sparking debate among analysts about what’s next. Historically, similar pullbacks often lead to short-term recoveries, which have some traders eyeing this as the start of another rally.
Others, however, caution that such moves often signal increased volatility ahead. According to CrypNuevo, liquidity is stacked toward the upside, particularly around the $119K–$120K zone, with key liquidation levels at $118.5 and $116.2K.
A further drop toward $110K, they note, could actually trigger more delta liquidations, potentially fueling a short squeeze and accelerating a rebound.
2. History Won’t Always Repeat Itself
Some traders are quick to compare Bitcoin’s current price action to what we saw back in January. As Crypto News Flash has reported, Bitcoin reached an all-time high of $109,000 during Trump’s inauguration and then dropped to $74,000 on April 9.
But seasoned analysts warn that history doesn’t always repeat itself so neatly. While the recent reversal pattern from its $123,000 high does look familiar, a classic pullback that often follows reduced momentum, market conditions have shifted.
As one veteran trader explained,
it’s very likely that we see a strong bounce either from here (the 1D50EMA), or from $110k if it comes. And it’s very unlikely to continue repeating January’s PA and have another 20% correction since the whole market structure and context have changed.
3. All Eyes on Fed’s September Move
All eyes are on the Federal Reserve as traders look ahead to September, with growing bets on an interest rate cut. Any move from the Fed could have a major impact on Bitcoin’s price trajectory this month. Several key Fed officials, including Vice Chair for Supervision Michelle Bowman, are scheduled to speak in the coming days, and markets will be listening closely for signals.
Adding to this, President Donald Trump has urged top Fed officials to override Chair Jerome Powell if he doesn’t move to cut rates, ramping up his criticism of the central bank’s independence. Powell, however, has maintained that the Fed’s best course of action is to wait and see how Trump’s aggressive tariff policies play out before making any moves.
4. Both Whales and Retail Sellers Are Cashing Out
On Aug. 1 alone, more than 40,000 BTC were sent to exchanges at a loss compared to their previous movement. The exchange whale ratio, which measures how much of these inflows are coming from large holders, spiked to what analysts called “dominating” levels, which is 0.70.
Blockchain data shows increased activity from both major investors and smaller traders, with significant transfers to exchanges suggesting a coordinated move to reduce risk. “When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline,” noted CryptoQuant contributor Arab Chain.
5. Demand Remains Surprisingly Healthy
Drakfrost, a writer at CryptoQuant, noted that some investors are getting nervous after Bitcoin’s dip. This is especially short-term holders (STH) who now face a tough choice: either sell at a loss or hold onto underwater positions.
Still, he pointed out that overall demand remains solid. In the past 30 days alone, roughly 160,000 BTC have been accumulated, with average holdings at these accumulation addresses jumping by about 50,000 BTC. That’s a clear sign of strong, steady buying behavior.
Despite the pullback, long-term demand for Bitcoin appears healthy, with both accumulation wallets and over-the-counter (OTC) activity on the rise, showing that institutional and retail confidence hasn’t wavered.
