Bitcoin Price Analysis: BTC Loses Momentum, Dips Below $120,000
Bitcoin (BTC) lost momentum after surging to an intraday high of $122,319 on Monday. As a result, the flagship cryptocurrency plunged to an intraday low of $118,050 before settling at $118,628.
BTC is down nearly 2% over the past 24 hours, trading around $118,618. However, analysts believe its bullish structure remains intact.
Ethereum ETH Holders Could Pivot Back To Bitcoin (BTC)
Bitcoin (BTC) pioneer Samson Mow believes Ethereum (ETH) investors will turn back to BTC once ETH prices get high enough. The pivot back to BTC could reverse a five-week jump in ETH prices. Mow explained his stance in a post on X, stating,
“Let me explain what’s happening with ETHBTC. Most ETH holders have a lot of BTC (ICO/insiders), and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s). Once they’ve gotten it high enough, they’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC. No one wants ETH in the long run.”
Mow has criticised altcoins in the past, and added that it will be difficult for ETH to jump to all-time highs, stating that the closer it gets to its all-time high, the stronger the trader’s drive to sell the asset.
Could the US Nationalise Bitcoin Holdings? Analysts Think So
Corporate crypto treasuries have crossed $100 million in value, prompting concerns that the US could nationalise some of the holdings in a move harking back to the gold standard era. Bitcoin treasury companies hold over 791,662 BTC worth $95 billion, a staggering 3.98% of BTC’s circulating supply. Corporate treasuries could become a central point of vulnerability for BTC, following a similar path to gold in 1971. One crypto analyst stated,
“If the US dollar is structurally getting weak and China is coming in, it’s a fair point that the US might make an offer to all the treasury companies and centralize it, where it could be then put into a digital form, not create a new gold standard. You could then rug it like happened in 1971. And it’s all centralized around the digital Bitcoin. The whole history repeats again back to the beginning.”
Strategy Adds To Bitcoin (BTC) Holdings
Michael Saylor’s Strategy has added to its Bitcoin stash, purchasing 155 BTC for $18 million in the week ending Sunday, according to a filing with the United States Securities and Exchange Commission (SEC). Strategy completed the purchase at an average price of $116,401 per coin. BTC started the previous week around $114,00 and traded above $120,000 by Sunday. The latest acquisition increases the company’s Bitcoin holdings to 628,946 BTC, valued over $72 billion.
The purchase also marks the fifth anniversary of the company’s Bitcoin strategy. Strategy launched its Bitcoin buying spree on August 11, 2020, with a $250 million purchase of 21,454. The price of the asset has soared nearly 1,000% since Strategy’s first purchase. However, some Bitcoin community members were surprised by the small purchase, which is one of the smallest in the company’s history. Coin Bureau founder Nic Puckrin commented on Saylor’s post, stating,
“Only 155 BTC? Looks like you need to raise more fiat.”
Metaplanet, Smarter Web, Add To Bitcoin (BTC) Treasuries
Japan’s Metaplanet and the UK’s The Smarter Web Company have added nearly $100 million worth of Bitcoin (BTC) to their treasuries. Metaplanet disclosed it purchased 518 BTC for around $61 million at an average price of $118,519 per coin. The purchase takes the Tokyo-based firm’s Bitcoin holdings to $18,113, worth around $2.15 billion at current prices. The purchase comes after Metaplanet announced plans to raise 555 billion Japanese yen ($3.7 billion) through perpetual preferred shares to fund future Bitcoin acquisitions.
On the other hand, London-based The Smarter Web Company purchased 295 BTC for $35.2 million at an average price of $119,412 per coin. The company funded its purchase in part by a $10.2 million equity raise completed on Monday. It also raised $21 million through a Bitcoin-denominated bond offering last week. The latest acquisition takes The Smarter Web Company’s Bitcoin holdings to 2,395 BTC, valued at around $284 million.
Bitcoin (BTC) Price Analysis
Bitcoin’s (BTC) rally lost momentum on Monday despite starting the week on a bullish note. The flagship cryptocurrency raced to an intraday high of $122,319 before slipping below $120,000 and settling at $118,701. The current session sees BTC marginally down, trading around $118,552. Despite the pullback, BTC’s bullish structure remains intact, underpinned by growing institutional interest and improving macroeconomic conditions.
However, analysts have warned the price could drop to $100,000, or even lose the $100,000 support if selling pressure persists. ZAYK Charts used the Wyckoff method to analyze the current market, stating that the BTC/USDT pair has already seen the classic “mark up” rebound phase from long-term lows, and has entered the “distribution” phase, an area where an uptrend generally reverses.
“After a strong Accumulation Phase in March–April confirmed by bullish RSI divergence, BTC entered a powerful Mark-Up phase, reaching new highs. Currently, price action is showing signs of a Distribution Phase — sideways movement with weakening momentum, supported by bearish RSI divergence. If distribution confirms, the next phase could be a markdown, with a potential drop toward the 95K zone.”
BTC registered a sharp decline on Friday (August 1), dropping over 2% and settling at $113,365. Sellers retained control on Saturday as the price fell 0.67% and settled at $112,601. Despite the overwhelming selling pressure, BTC recovered on Sunday, rising 1.52% to cross $114,000 and settle at $114,215. The price continued pushing higher on Monday, registering a 0.69% increase and settling at $115,051. BTC plunged to an intraday low of $112,707 on Tuesday as selling pressure returned. It rebounded from this level to reclaim $114,000 and settled at $114,051, ultimately dropping 0.83%. The price recovered on Wednesday, rising 0.80% to reclaim $115,000 and settle at $115,028.
Source: TradingView
Bullish sentiment intensified on Thursday as BTC rallied, rising over 2% to cross $117,000 and settle at $117,515. Despite the positive sentiment, the price was back in the red on Friday, dropping nearly 1% to $116,683. Sellers retained control on Saturday as BTC registered a marginal decline. However, it was back in bullish territory on Sunday, rising 2.42% to cross $119,000 and settle at $119,309. BTC surged to an intraday high of $122,319 on Monday, starting the week on a bullish note. However, it lost momentum after reaching this level and fell below $120,000 to $118,701, ultimately registering a 0.51% drop. The current session sees the price marginally up, trading around $118,858.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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