Bitcoin: Calm Before the Storm or Just a Technical Rebound?
As the first full week of August begins, the cryptocurrency market moves in unstable balance. On one side, a technical rebound momentarily soothes spirits after a drop below $112,000. On the other, nervousness remains palpable, fueled by creeping volatility and persistent macroeconomic uncertainty. Bitcoin, in particular, shows contradictory signs. Is it repeating its bullish cycle or slowly slipping towards a new deep correction? One thing is certain: the technical and fundamental signals around Bitcoin leave no one indifferent.
In Brief
- Bitcoin oscillates between bullish recovery and uncertainty, while the $116,500 threshold captures all traders’ attention.
- Despite massive sales, long-term investors continue to accumulate, betting on a return towards the highs.
- Technical signals and institutional demand suggest a possible explosive scenario towards $75,000.
The $116,500 Threshold: Tipping Point or Market Illusion?
The $116,500 level today stands as a real pivot for Bitcoin's price. It is not just a round number, especially for miners who accumulated the equivalent of $1.66 billion in Bitcoin in July. Indeed, it is a strategic point where short sellers could be swept away by a wave of liquidations.
TheKingfisher, a well-known figure in technical analysis on X, describes it as a magnet. In other words, if the price crosses this barrier, the bullish movement could accelerate sharply.
"If Bitcoin crosses $116,500 decisively, expect a strong bullish momentum to follow."
However, not everyone shares this enthusiasm. Some analysts point out that current volatility is low, which could mean a false start. Bitcoin has only recorded a 3.6% movement recently, quite little for an asset used to roller coasters.
This calm could hide a trap or, on the contrary, precede a major shakeup, where several experts wonder about the possibility of a repeating bullish scenario.
What is certain is that this technical threshold crystallizes attention. If crossed with conviction, buyers could regain their appetite. But in case of rejection, a return to $110,000, or even less, is not to be excluded. For now, the market holds its breath.
Bitcoin: Between Massive Sales and Long-Term Investors’ Appetite
On August 1st, more than 40,000 bitcoins were sold at a loss by short-term holders. And it’s not just small holders. Indeed, whales, these massive wallets influencing trends, have reduced their exposure, a sign of some discomfort regarding price developments.
But in the shadow of this massive sale, another movement emerges. The so-called accumulator wallets, those who buy and never sell, have increased their holdings by 50,000 BTC in one month.
On the OTC platforms side, often used by institutions, stocks are exploding and now exceed 500,000 bitcoins.
This double face of the market reflects the current complexity. On one hand, a segment of investors gives in to panic or adjusts positions. On the other, a solid base continues to strengthen for the long term. If Bitcoin manages to stabilize its price in the coming days, this silent demand could become the fuel for a return to the highs. And why not reach $148,000.
Frequently Asked Questions (FAQ)
Bitcoin's Price Movements
Q: What is the significance of the $116,500 threshold for Bitcoin?
A: The $116,500 level is considered a significant pivot point for Bitcoin's price. Crossing this threshold decisively could trigger a strong bullish momentum, potentially leading to liquidations of short positions.
Q: Why is Bitcoin's current low volatility considered noteworthy?
A: While Bitcoin is known for its volatility, a recent low movement of 3.6% is considered small for the asset. This low volatility could indicate a period of consolidation before a significant price move, or it might be a deceptive "false start."
Investor Behavior
Q: What does the sale of 40,000 bitcoins by short-term holders indicate?
A: This suggests that short-term holders may be exiting their positions, possibly due to panic or a need to adjust their portfolios in response to price action or market uncertainty.
Q: Who are "accumulator wallets" and what is their significance?
A: Accumulator wallets are wallets that consistently buy and hold Bitcoin, rarely selling. An increase in their holdings indicates strong long-term conviction in Bitcoin's future value, suggesting a robust underlying demand.
Market Outlook
Q: What are the potential scenarios for Bitcoin's price based on current signals?
A: Technical signals and institutional demand suggest a possible explosive scenario, with some analysts predicting a potential rise towards $75,000. Conversely, a rejection at key resistance levels could lead to a correction back towards $110,000 or lower.
Q: What is the role of OTC platforms in the Bitcoin market?
A: OTC (Over-The-Counter) platforms are often used by institutional investors to trade large volumes of Bitcoin. An increase in stocks on these platforms indicates growing institutional interest and potential large-scale buying or selling activity.
Crypto Market AI's Take
The current market sentiment surrounding Bitcoin, characterized by conflicting signals of technical rebound and underlying volatility, presents a complex trading environment. Long-term investors demonstrating accumulation behavior suggests a belief in Bitcoin's future upside potential, a sentiment that our AI-driven analysis often identifies as a strong indicator of sustained growth. For those looking to navigate these intricate market conditions, understanding the interplay of technical levels like the $116,500 threshold and the actions of different investor groups is crucial. Our platform leverages advanced AI algorithms to provide real-time market intelligence and predictive analytics, helping users make informed decisions amidst such uncertainty.
More to Read:
- What Drives the Prices of Cryptocurrency?
- How to Read Cryptocurrency Graphs: A Beginner to Advanced Guide
- Bitcoin News Today: Bitwise CIO Declares Four-Year Crypto Cycle Obsolete
Source attribution: Originally published at Cointribune on Mon, 04 Aug 2025.
