Market Wrap: Bitcoin Price Drops 8% From ATH As Open Shorts Mount To $16B

• Bitcoin price falls to $114,691 as open short positions surge to $16 billion, signaling bearish sentiment and increased volatility ahead.
• Bitcoin hovers near its 50-day SMA at $99K, with $111,000 acting as critical support.
• Despite the pullback, the White House hints at Bitcoin acquisition, and MicroStrategy plans a $4.2B raise to buy more BTC.

Bitcoin price has dropped 8% since its previous all-time high and 3.4% in the last 24 hours to trade at $114,691 as of 4:18 a.m. EST on an 18% surge in trading volume to $54 billion.

This happens as the amount of open BTC shorts skyrocket to $16 billion in the last 24 hours, according to data from Coinglass.

When this happens, it means traders are generally bearish on Bitcoin because they anticipate the market will turn downward.

ADVERTISEMENTMeanwhile, White House on July 30 officially published digital assets report, and said they will “develop strategies that could be used to acquire additional bitcoin for the Reserve.”

Despite the downward turn of BTC price, Michael Saylor’s Strategy is planning to raise $4.2 billion to buy more Bitcoin

Bitcoin Price Eyes $111,000 Support Amid Rapid Sell Off

BTC price was cruising along a solid uptrend, with the 50-day Simple Moving Average (SMA) at $99,716.71 and the 200-day SMA (blue line) at $76,942.74 showing steady gains since late 2024. However, recent action shows a rejection at that $123,000 resistance level, followed by a sharp pullback.

ADVERTISEMENTThat black arrow signals a potential reversal, with the price now hovering near the 50-day SMA. If this support cracks, we could see BTC sliding toward $99,000 or even $75,000, where the 200-day SMA might catch it like a safety net.

Digging into the indicators, the Relative Strength Index (RSI) sits at 59.08, a neutral territory, not yet oversold, so no panic signals yet

The Moving Average Convergence Divergence (MACD) is flattening and threatening a bearish cross, hinting at more downside vibes

BTCUSDT Chart by TradingViewThe Average Directional Index (ADX) at 24.06 suggests the trend strength is moderate, nothing wild, but watch that momentum.

The volume is up18%, which could mean the dip’s is gaining steam.

Will Bitcoin Price Survive This Correction?

The $16B in open shorts is a huge-sized bet against BTC. High short interest often spells trouble, either a squeeze if BTC pumps, or a cascade if bears keep pushing. With the market already shaky post-ATH, this could amplify volatility

ADVERTISEMENTIf BTC price holds above $111,000 and flips that resistance, Bitcoin may skyrocket to $130,000 territory. But if shorts win and that 50-day SMA breaks, expect a grind down to $90,000-$100,000.

Looking ahead, August could be a rollercoaster. The chart’s setup suggests a consolidation phase unless a big catalyst, like a macro shift or whale move, kicks in.

Keep an eye on that $111,000 level as it’s the line in the sand. For now, holders might want to brace for turbulence, while traders get ready to buy some dips.

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