Bitcoin has entered a sharp corrective phase, shedding over 2.5% in the past 24 hours amid intense selling pressure and heightened volatility. The downturn follows a significant liquidation event triggered by large institutional offloading, with prices slipping below critical short-term levels. As July nears its monthly close, Bitcoin’s inability to reclaim momentum above $118K raises the likelihood of a deeper pullback. If bearish pressure persists, BTC price could slide toward the $112K–$110K zone before stabilising.
Now the question arises whether the Bitcoin price will trigger a recovery back above $119K ahead of the monthly close, as it seems to be extremely important for a potential rebound toward the $124K to $126K range.
Why the BTC Price is Plunging?
The Bitcoin price has dropped nearly 3% in the past 24 hours, facing a sharp wave of selling pressure. The sudden drop comes amid a convergence of bearish macro and crypto-native pressures. One of the main triggers is renewed hawkish sentiment from the U.S. Federal Reserve. With expectations of rate cuts now pushed further out, Bitcoin is taking a major hit as investors look out for more investment options.
On the other hand, the large institutional players appear to be offloading holdings, with Bitcoin ETFs recording fresh outflows. Meanwhile, the whale wallets have shown a notable rise in inflows, typically a precursor to sell-offs. The drop in the price also triggered a wave of liquidations, especially among the long traders, which intensified the decline. Therefore, if the selling pressure continues, BTC price is feared to test the $112,000 to $110,000 range, while a rise above $118,000
What to Expect from the Bitcoin (BTC) Price Rally This Week?
After a few days of consolidation around the pivotal resistance of $118,500, the price plunged hard to the local support below $115,500. This pullback has dragged the rally below a crucial range, technically, and hence, continued upward pressure could place the BTC price into a pivotal support zone.
The Bollinger bands have squeezed after remaining expanded since the start of the month. This suggests the token’s volume and volatility have been dropping, and an extended squeeze could compel the price to maintain a descending consolidation. On the other hand, the RSI has taken a steep drop, suggesting a massive drop in the strength of the rally. Additionally, the CMF and OBV have deviated towards the south, validating the growing dominance of the bears.
The upcoming weekend is expected to turn the tables for the Bitcoin (BTC) price rally, while the current chart patterns suggest both bullish and bearish cases. If the price reclaims $118,000, then a rise above $120,000 is expected, but if it tests the $110,000 support zone and fails to defend, a deeper correction may follow.
