Bitcoin Price Analysis: BTC Pinned Below $115,000 As ETFs Lose Millions
Bitcoin (BTC) is struggling to build momentum during the ongoing session, with the price marginally up. The flagship cryptocurrency briefly crossed $115,000 on Tuesday but failed to maintain its upward trajectory, dropping to end the day at $114,135.
BTC’s recovery has faced resistance and selling pressure as long-term holders lock in their profits and institutional sentiment cools.
Bitcoin ETFs Register Dramatic Selloff
Spot Bitcoin ETFs experienced a dramatic selloff, registering over $333 million in outflows, prompting investors to question the longevity and sustainability of the current bull market. BlackRock’s flagship ETFs, IBIT and ETHA, accounted for 84% of total outflows recorded on August 4.
“Blackrock institutional clients net sold yesterday. -$292M -$375M. This is the first significant outflow since February.”
As a result, BTC retreated below $112,000, dropping to a low of $111,920 before recovering. Fidelity and Grayscale also reported substantial outflows, losing around $49 million in Bitcoin, according to data from SoSoValue. Julio Moreno, Head of Research at CryptoQuant, believes the bull market is not over, adding that BTC is experiencing another wave of profit-taking. According to Moreno, this leads to a period of consolidation and correction before the rally’s next leg.
Indonesia Exploring Bitcoin Reserve
Bitcoin Indonesia has claimed the Indonesian government is exploring the use of Bitcoin (BTC) as a reserve asset. Bitcoin Indonesia representatives met with government officials to discuss how a Bitcoin reserve strategy could drive economic growth. Bitcoin Indonesia stated in a post on X,
“We were invited to the Vice President’s office to present how Bitcoin could benefit the country. We explored a bold idea: Using Bitcoin mining as a national reserve strategy. Yes, seriously. [Indonesia] is looking into how Bitcoin could fuel long-term economic strength.”
Bitcoin Indonesia stated that the meeting also focused on Bitcoin mining and educational initiatives. Bitcoin Indonesia’s presentation to government officials included how the country can leverage hydroelectric and geothermal resources to boost economic growth, a strategy that has worked in several other countries. The Bitcoin group also presented Strategy executive chairman Michael Saylor’s prediction that BTC could reach $13 million by 2045. It also discussed the importance of Bitcoin education initiatives to drive adoption, a view one representative agreed with. Bitcoin Indonesia stated,
“Indonesia is waking up to Bitcoin. Adhit from the VP office says, " Indonesia must also continue to educate about Bitcoin in the future.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is up nearly 1% during the ongoing session, trading around $113,950 as buyers attempt to reclaim $115,000. The flagship cryptocurrency started the week in positive territory, registering a 0.69% increase to settle at $115,097. However, it lost momentum on Tuesday, falling to an intraday low of $112,722 before settling at $114,135. BTC is up over 1% during the ongoing session, trading around $115,300.
Analysts highlighted two key metrics that indicated a shift in investor sentiment. According to analysts, BTC could pause its upward momentum as long-term holders lock in their profits and adverse market sentiment keeps prices muted, giving sellers an advantage. Bitcoin whales have also started moving their BTC holdings, suggesting that prices have reached a local top. Taker sells volume on futures contracts has also risen. The last time this happened, BTC saw a 6% drop. Options data shows a clear shift in sentiment, with the 30-day skew dropping from +2% to -2%, indicating that investors are paying more to hedge against declines.
Institutional interest has also cooled, with $1.2 billion being moved out of spot Bitcoin ETFs over the past two days, adding to the sell pressure. CoinShares believes a trend shift is underway following a hawkish FOMC meeting. Georgii Verbitski, founder of TYMIO, stated,
“Sideways trading through August is the most probable scenario before momentum resumes.”
Galaxy Digital founder Michael Novogratz added to the adverse market sentiment by warning that the trend of companies being created to accumulate Bitcoin has likely peaked. He added that Bitcoin treasury companies could lock out new entrants by limiting available liquidity. Meanwhile, uncertainty around tariffs and macroeconomic conditions has created a risk-off sentiment, as markets adopt a wait-and-watch approach. Fidelity's director of global macro, Jurrien Timmer, urged investors to exercise caution, highlighting weak market breadth, with gains concentrated in a few stocks.
BTC ended the previous weekend in positive territory, rising 1.31% to $119,398. However, it lost momentum on Monday, dropping 1.11% to $118,069. The price encountered volatility on Tuesday as buyers and sellers struggled to establish control. Sellers gained the upper hand as the price registered a marginal decline and settled at $117,925. BTC fell to an intraday low of $115,722 on Wednesday as selling pressure intensified. It rebounded to reclaim $117,000 and settle at $117,783, ultimately registering a marginal decline. Sellers retained control on Thursday as BTC fell almost 2% and settled at $115,800.
Source: TradingView
Bearish sentiment intensified on Friday as BTC fell over 2% and settled at $113,365. Sellers retained control on Saturday as the price fell 0.67%, dropping below $113,000 and settling at $112,601. Despite the overwhelming selling pressure, BTC recovered on Sunday, rising 1.52% to reclaim $114,000 and settle at $114,311. Buyers retained control on Monday as the price rose 0.69% to $115,067. BTC plunged to an intraday low of $112,722 on Tuesday as selling pressure returned. However, it rebounded from this level to reclaim $114,000 and settle at $114,135, ultimately registering a 0.84% drop. The current session sees the price up almost 1%, trading around $115,235 as buyers look to push the price above a key resistance level.
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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