Why Bitcoin Price is Down Today? Is a Reversal Coming?

Bitcoin is currently trading around $116,500, slipping from recent highs near $123,000. Despite signs of renewed interest, the cryptocurrency remains locked in an 18-day trading range between $115,000 and $121,000, highlighting market hesitation. Traders remain cautious as they await clarity on macroeconomic policy and liquidity conditions.

Globally, the crypto market cap stands at approximately $3.85 trillion, down over 6% in the past 24 hours, while trading volume has surged to about $180 billion. While short-term volatility was expected following the Fed’s rate decision, overall market sentiment remains mixed.

Altcoins are currently benefiting from capital rotation, but Bitcoin may face challenges as we move into early August. So, what’s pulling the plug on the bull run?

Why Bitcoin Is Dropping Today?

Wednesday’s release of the Federal Reserve’s FOMC minutes triggered a sharp sell-off. Fed Chair Jerome Powell reaffirmed the decision to hold off on rate cuts, dampening hopes for near-term monetary easing. As a result, most risk assets, including Bitcoin, moved lower.

At the same time, markets are grappling with the gap between pro-crypto policy announcements from the Trump administration and actual price action. This disconnect is fueling anxiety and indecision among traders.

On-Chain and Technical Signals Highlight Pullback Risk

Analysts at Hyblock Capital characterized recent price action as a “liquidity hunt”, with 15‑minute candles showing long wicks, signalling indecision. The bid‑ask ratio at 10% orderbook depth turned negative, raising the probability of price tapping a liquidation level near $115,883.

Liquidity heat maps from Binance and Bybit identify short positions accelerating above $120,000, while long positions risk liquidation below $115,000. Meanwhile, sell walls around $121,100 and buy orders lined up at $111,000 hint at structural pressure for further downside moves.

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Corporate Buying and ETF Inflows Signal Strength

The recent drop doesn’t mean Bitcoin’s next move will be bearish. Analysts like Charles Edwards point to bullish signs, including a rise in corporate buying with three companies buying BTC daily, with a buyer-to-seller ratio of 100:1. Spot Bitcoin ETFs have also seen $641 million in inflows since late July, despite price weakness.

On Reddit, users responded with humor and casual insights. Some joked about a “Bitcoin CEO” running a sale, while others blamed normal market mechanics, more sellers than buyers, typical volatility, or a pre-pump shakeout. A few cited tariff news or CME gap closure. But overall, the community sees it as a normal dip in a longer uptrend, just Bitcoin being Bitcoin.