Bitcoin Price: Bull Run On Pause? New Data Suggests So

Market data shows that the largest digital asset, Bitcoin (BTC) price dropped below $116,000 in the early hours today.

Notably, this has led some investors to wonder if the recent surge is starting to fade.

Meanwhile, this BTC price decline comes not long after it hit a record high above $123,000 in mid-July.

Since then, the market has slowed, and traders are now trying to figure out where things are headed.

Bitcoin Price Slips into Low-Liquidity Zone as Buyers Pull Back

It is worth noting that Bitcoin price falling below the $116,000 level puts it in what analysts call an “air gap.”

This is a price range where very little trading has taken place in the past, making it harder for the market to find support.

Notably, this development occurred shortly after the largest cryptocurrency saw a price increase of $123,000

Furthermore, according to Glassnode, this zone stretches between $110,000 and $116,000 and lacks strong buyer activity.

This move into weaker territory follows a failed attempt to hold the lower boundary of a large supply cluster.

On July 31, BTC price broke decisively below $116,000. That marked the start of this low-liquidity stretch.

Though some buyers returned to scoop up BTC at discounted levels, the recovery has been slow.

The key resistance now sits at $116,900. This is the average cost basis for most short-term holders who bought in recent weeks.

So far, Bitcoin price has not been able to climb back above this level. If the price remains below it, more holders could start cutting losses, adding to the sell pressure.

However, it’s worth noting that BTC price today added around 2% and hovered around $116,700 during writing.

Meanwhile, Glassnode’s on-chain data shows that around 70% of short-term holders are still in profit. But this number is down from previous weeks.

Market participants believe that if the trend continues, it could trigger more selling, especially among new investors hoping for a quick return.

Adding to the concern, ETFs recorded their biggest Bitcoin outflow since April. On August 5, roughly 1,500 BTC left institutional funds.

Large ETF outflows often demonstrate that institutional investors are feeling cautious and pulling back while the market remains shaky.

While this occurs, Bitcoin mining activity continues to grow. Reports indicated that mining difficulty reached a new all-time high, suggesting strong competition among miners.

However, some market watchers are of the opinion that this can be a positive sign for the long term. This is because more miners generally improve the network’s strength and decentralization.

In related news, London BTC Company deployed over 1,000 mining machines in the United States and Canada.

The company raised £1.5 million to build its Bitcoin treasury, showing continued interest in Bitcoin as a strategic asset even during short-term volatility.

BTC Price Patterns Hint at Final Rally Before Correction

In a separate analysis, well-known trader Merlijn shared a chart on X that outlines a Bitcoin price pattern known as an ‘Ending Diagonal.’

This technical setup often appears at the end of major BTC price moves and includes five distinct waves.

According to his chart, Bitcoin is now in the final wave, pointing to a potential high of $155,000 before a sharp reversal.

The chart suggests that once this fifth wave is complete, the market could face a strong correction.

This pattern has appeared in past bull cycles and usually ends with a drop once euphoria fades.

With ETF outflows increasing, buyer strength weakening, and many traders now watching from the sidelines, the next few weeks could prove critical.

Whether Bitcoin pushes for one more high or slips further depends on how demand responds in this thin trading zone.

It is important to add that as the mixed signals continue, recent data also shows that the United States now controls 7.8 million BTC, roughly 40% of the global Bitcoin supply.

Most of it is held through institutions. This large share reflects the growing link between traditional finance and Bitcoin, and could influence how the next phase unfolds.