Is Bitcoin losing momentum after failing to break $119K again?

Bitcoin today dropped to an intraday depot of $ 117,914, because $ 47.5 million in liquidations came on the market. However, the wider bullish structure still remains intact.

Why did BTC prize dip today?

The price of Bitcoin fell today when a high-liquidity zone came in between $ 118k and $ 119k, full of lifting tree positions, that is, large bets placed by traders who expect the rally to continue.

Many of these were hurriedly introduced, without clear confirmation, probably powered by FOMO after BTC’s sharp run from $ 115k to almost $ 120k last week.

When the price did not broke higher and, instead slid into this zone, those long positions began to be automatically liquidated, causing a wave of forced sales to be activated that pushed the price lower.

According to 24-hour liquidation Wittemap data from Coinglass, if the narrow pressure continues, Bitcoin can slide deeper into the range of $ 118k, where another cluster of vulnerable long positions exposes.

During the writing, BTC Bulls tried to reclaim $ 119,000 after they had violated this resistance zone several times several times in recent weeks.

According to the liquidation heat map, a dense cluster of short positions is concentrated between $ 120,000 and $ 120,600, creating a strong resistance zone that has repeated the upward movements of BTC in recent weeks.

Every intraday attempt to reclaim $ 119k has received a sharp sales pressure, probably because of automated liquidations and short reins.

Part of the recent sales pressure is also due to making a profit by early investors and intraday traders, especially since BTC continues to act near his all times of $ 122,838, and more than 61% above the LOS points of April.

At the same time, the market momentum seems to turn away Bitcoin in the direction of Ethereum and the wider Altcoin market. Bitcoin’s dominance has fallen by 4.98% in the past month, while the market share of Ethereum has increased by 2.98% in the same period.

Ether has made stronger relative profits in recent sessions, supported by a sharp increase in the demand for spot eth ETFs, which this week saw the influx of more than $ 1.8 billion, compared to only $ 72 million for Bitcoin.

This capital rotation has also been transferred to altcoins with high beta such as Solana, Avalanche and Chainlink, because traders look for higher volatility games in the midst of the stuck breakout attempts from Bitcoin.

Has the Bitcoin Bull run over?

According to cryptoquant analysts, Bitcoin can still have some room to run before it touches a cyclustop.

In an analysis of 28 July, Cryptoquant -contribution Yonsei Dent pointed out that Bitcoin’s MVRV ratio, which compares its current market price with the average cost base of all coins, is approaching levels that previously marked important tops.

The 365-day advancing average of this ratio is a double top pattern, similar to what was seen in the Bull cycle of 2021, where the second peak closely matches the Markttop.

Although the second MVRV peak can land in September if the pattern is in force, Dent warned that the market could already see a reversal at the end of August.

“In short, we enter a zone where optimism and caution must co -exist,” wrote Dent.

For the BTC rally to continue, analysts say that a decisive break above the resistance level of $ 119,500 is crucial.

According to Bitbull Bitcoin is currently a long -term trendline, and a confirmed weekly close to $ 119,500 could activate a next rally in the coming weeks to $ 135,000.

This momentum can be supported by improving the macro -economic sentiment when the US reach new stages of trade negotiations with important partners.

In the meantime, every Dovish-Toon of the Federal Reserve, which will meet this Wednesday, can stimulate the risk sentiment and offer signs of potential rate reductions later this year and offer Bitcoin in the short term.