Bitcoin Price Drops to $117,465 as BTC Tests Critical Support Amid Market Volatility

Quick Take

• BTC currently trading at $117,465.72 (-0.46% in 24h) • Bitcoin's RSI at 58.82 suggests neutral momentum despite recent selling pressure • Sharp $2,803 price drop on July 25 creates uncertainty as BTC price seeks direction

What's Driving Bitcoin Price Today?

Bitcoin faces continued pressure following Thursday's dramatic selloff that saw the BTC price plummet by $2,803.11 (2.43%) to $115,560.93. This sharp decline marked one of the most significant single-day drops in recent weeks, reflecting growing uncertainty in the cryptocurrency market as traders reassess risk appetite.

The selling pressure intensified after Bitcoin fell below the psychologically important $118,000 level on July 19, when BTC traded at $117,980.45. This breakdown signaled a shift in market sentiment, with the BTC price struggling to maintain momentum above key technical thresholds.

Despite the recent regulatory clarity provided by President Trump's signing of the GENIUS Act on July 18, which established a framework for stablecoins backed by US dollars, the positive regulatory development has been overshadowed by broader market volatility. The legislation, while potentially beneficial for long-term crypto market stability, has failed to provide immediate support for the BTC price amid the current bearish sentiment.

BTC Technical Analysis: Mixed Signals Emerge

Bitcoin technical analysis reveals a complex picture as multiple indicators provide conflicting signals. The BTC RSI currently sits at 58.82, placing Bitcoin in neutral territory and suggesting neither oversold nor overbought conditions. This reading indicates that while selling pressure exists, Bitcoin hasn't reached extreme levels that typically signal major reversals.

The MACD histogram shows a bearish reading of -387.4544, indicating weakening momentum for BTC as the signal line remains above the MACD line. This bearish divergence suggests that despite Bitcoin's overall strong bullish trend, near-term pressure continues to build.

Bitcoin's position relative to key moving averages tells an interesting story. While the BTC price trades above the critical 200-day SMA at $98,437.72, confirming the long-term bullish structure, it sits slightly below the 7-day SMA at $118,110.99, indicating short-term weakness. The proximity to the 20-day EMA at $115,218.89 suggests Bitcoin is at a critical juncture where the next move could determine near-term direction.

Bitcoin Price Levels: Key Support and Resistance

Based on Binance spot market data, Bitcoin support levels are clearly defined with immediate support at $107,429.57 and strong support at $98,200.00. The current BTC price of $117,465.72 sits comfortably above these levels, providing a significant cushion for bulls.

On the upside, BTC resistance appears formidable at $123,218.00, which serves as both immediate and strong resistance. This level has proven challenging for Bitcoin to break, as evidenced by the recent rejection and subsequent decline.

The Bollinger Bands show Bitcoin trading near the middle band at $116,820.66, with a %B position of 0.5495 indicating balanced positioning. The upper band at $123,332.11 aligns closely with the key resistance level, while the lower band at $110,309.21 provides additional context for potential support.

Bitcoin's daily Average True Range of $2,789.72 suggests significant volatility potential, meaning traders should expect price swings of nearly $2,800 in either direction during typical trading sessions.

Should You Buy BTC Now? Risk-Reward Analysis

For aggressive traders, the current BTC price presents a complex risk-reward scenario. The immediate support at $107,429.57 offers a clear stop-loss level roughly $10,000 below current prices, while resistance at $123,218.00 provides a target approximately $5,700 higher. This creates an unfavorable risk-reward ratio for long positions from current levels.

Conservative investors might consider waiting for either a break above $123,218.00 resistance or a test of the $107,429.57 support level for better entry points. The BTC/USDT pair's recent volatility suggests patience could be rewarded with more favorable entry opportunities.

Swing traders should monitor Bitcoin's reaction at the 20-day EMA level of $115,218.89. A decisive break below this level could signal further downside toward the $110,000 range, while a bounce could target the previous resistance near $123,000.

The overall "Very Strong Bullish" trend classification suggests that any significant dips could present buying opportunities for long-term holders, particularly if Bitcoin approaches the strong support zone around $98,200.00.

Conclusion

The BTC price sits at a critical inflection point as Bitcoin navigates between key technical levels following recent volatility. While the broader trend remains bullish, near-term price action suggests caution is warranted. Traders should watch for Bitcoin's reaction at current support levels, with a break below $115,000 potentially triggering further downside toward $107,429.57. Conversely, a recovery above $118,000 could signal renewed buying interest and a potential test of resistance at $123,218.00 within the next 24-48 hours.