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After soaring to just shy of $124,000 weeks ago, Bitcoin, the first and largest cryptocurrency by market capitalization, has been stuck in a narrow consolidation around $118,000 since.
At press time, BTC was down 0.6% in the last 24 hours and 0.3% weekly at $118,539, having been mostly flat since the beginning of the week. Prices have been in a range of $115,697 to $120,998 since July 14, when Bitcoin reached an all-time high of $123,231.
According to data sources, U.S. spot bitcoin exchange-traded funds experienced net outflows of $131.4 million on Monday, snapping a 12-day streak of consecutive inflows.
The now-ended ETF inflow streak coincided with that strong rally in Bitcoin, the funds attracting more than $6 billion during the 12 days.
Despite the ETF cooling, Bitcoin remains 11% higher in July and continues to trade near record highs. While volatility remains a factor, this indicates that both investor interest and new capital are still flowing into the space, albeit not as steadily as last week.
Eyes on $117,500
Bitcoin’s recent price action has traders and analysts keenly watching the charts, as on-chain data now points to a critical level that could determine BTC’s short-term direction.
According to derivatives analytics platform CoinGlass, liquidity is heavily concentrated around the $117,500 level, making it a critical support zone in the short term.
Liquidity zones serve as crucial predictors of anticipated price movements. When liquidity clusters at a specific level, it usually means that market participants have placed a large number of stop-loss orders or leveraged positions around that price. These zones frequently behave as magnets, attracting price action to them, and once broken, they can trigger sharp movements in either direction.
At $117,500, CoinGlass data shows one of the largest concentrations of liquidity in the current short-term range. If Bitcoin's price falls to this level, it may trigger a wave of liquidations, increase volatility and force market participants to reprice risk.
Vladislav Sopov
U.Today Editorial Team