Bitcoin’s Retreat to $113K: What’s Driving the Pullback and What Comes Next?
3 min read
🟢 TL;DR
Bitcoin recently slipped 3–3.5% to test a support zone around $113K after reaching an 𝘼𝙏𝙃 above $118K.
The move retraced through critical support at $115,724, confirming a shift in short-term sentiment.
While technically this could be a healthy dip ahead of another leg higher, growing macro uncertainty and cautious trader psychology may delay any breakout.
📉 What Just Happened: Market Recap
Bitcoin surged to a fresh all‑time‑high above $118,000, driven by institutional inflows, CME ETF optimism, and record trading volume—marking a pivotal moment for crypto’s mainstream shift.(Decrypt, Yahoo Finance)
After hitting resistance near $119–120K, BTC reversed sharply. Exchanges saw heavy long liquidations, triggering a cascade that pushed the price downwards into the low $113K zone.(The Coin Republic, Decrypt)
The catalyst: the breakdown of 2-week consolidation support (~$115.7K), which prompted a rapid slide to a local low of $114,116.(CryptoRank)
🔍 Technical Breakdown: Is $114K the New Floor?
Support Fractured at $115.7K
Once a ceiling, $115.7K collapsed on volume, allowing the price to retest the lower boundary around $114K—a weak hold but not yet broken.(CryptoRank, news.bitcoin.com)Triangle Pattern in Play
Bitcoin is stuck in a symmetrical triangle since last month. Breaking below $114K could invite further bearish momentum toward $112K+.(Decrypt)CME Gap Reopen Expected
Bullish trader Daan Crypto Trades notes a fresh CME futures gap between $118.2K–$120K, now likely to close after this pullback—historically, such gaps act like magnets.(CryptoRank)Exchange Reserves at 3-Year Lows
Supply on exchanges recently dropped to ~2.38M BTC, suggesting reduced immediate selling pressure—fewer coins are ready to trade into this dip.(The Coin Republic)
🌦️ Macro & Sentiment: The Bigger Forces at Play
US Tariff Tensions: Headlines in early August rattled investors, leading to a broader 3.8% crypto market cap decline. Bitcoin appears sensitive to shifting trade policy.(timesofindia.indiatimes.com)
Overextended Market Psychology: Sentiment metrics (RSI ~79, CMF +0.17) reached overbought extremes—investors began profit-taking after repeated ATHs.(The Coin Republic, Decrypt)
Cautious Trader Behavior: Futures funding is mixed; traders are watching weekly flag structures for confirmation before re-entering longs.(investx.fr, tradingview.com)
🔮 What’s Next? Scenarios & Price Targets
| Scenario | Technical Zone | Implication if Triggered |
| Bounce holds at $114K | $114K – $115K support zone | Signals healthy consolidation; retests for $120K |
| Break below $112K | $110K – $112K re-accumulation | Could expose breakdown toward $105K |
| Bull Range Continuation | $115K – $120K range | Coiling for next breakout; watch CME gap $118K |
| Breakout Above $120K | $120K -> $124K Dial-up | Could trigger short squeeze and new ATHs |
🧠 Final Thought
Bitcoin’s slide to $114K isn’t a breakdown—it’s a stress test. Trendlines are still intact, exchange volumes are retreating, and gaps remain unfilled. If $114K holds, expect a bounce and retest near $120K. If not, brace for a gradual re-accumulation phase in the $110K–$115K zone.
As always:
📌 Price moves fast. Plan your strategy. Risk-manage. Don’t trade with FOMO.