Bitcoin Stalls: Why $116K Has Become Definitive
Date: 2025-08-08 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
According to Glassnode, the level around $116K has become a critical benchmark for short-term investors, determining the immediate price outlook and behavior of market participants.
On July 14, BTC reached a record, after which a consolidation phase began in the range of $115-119K. However, by the beginning of August, the price began to fluctuate in a narrower corridor of $114-115K. By August 7, the rate rose again above $116.5K, according to Binance, but analysts recorded signs of instability.
Glassnode notes that the $116K level has been tested by the market multiple times. Each time the price approached it, it bounced upwards, indicating demand. However, on July 31, this support was broken, creating a price gap with low liquidity. Such “gaps” usually become zones for accumulation of coins: traders try to buy in taking into account the recent decline. Glassnode uses on-chain data to analyze market trends and investor behavior. Their tools allow you to assess at what levels BTC is being bought and held. According to analysts, the $116,000 zone represents the basic entry price for short-term holders - those who hold assets for one week to a month. Staying below this level increases the likelihood of a prolonged sideways phase or a decline to $110,000.
An interesting moment was noted in the period from July 31 to August 4: against the backdrop of a rollback to $112,000, investors bought about 120,000 BTC - at a market price of about $13 billion. This indicates a “buy on the dip” strategy common among bull market participants.
Although exchange-traded bitcoin ETFs in the US have experienced a temporary outflow of capital, analysts believe that this phenomenon is short-term and does not indicate a sustainable trend. However, the report emphasizes that if the price does not return above $116,000 in the near future, new investors may lose confidence and selling pressure will increase.
At the same time, despite the decline in the profitability of short-term holders, about 70% of the coins they bought remain profitable. This confirms the moderately positive mood of market participants and the possibility of a return to growth with sufficient demand.
