Bitcoin Price Analysis: Is BTC Stuck In Limbo Or Will Markets See A Push Towards $120,000
Bitcoin (BTC) has started the week in positive territory, with the price marginally up after reaching an intraday high of $115,093. The flagship cryptocurrency ended its six-day decline on Sunday, rising 1.52% to reclaim $114,000 and settle at $114,311.
BTC faced significant selling pressure last week, as it dropped out of its trading range and plunged below $112,000 on Sunday before recovering.
MetaPlanet Starts August With Big Bitcoin Buy
Japanese investment firm Metaplanet completed the purchase of 463 BTC on Monday, becoming the first Bitcoin treasury company to capitalize on the weekend dip. The firm completed the purchase for 8 billion Japanese yen ($53.7 million) at an average purchase price of $115,895 per coin. The latest buy takes the company’s Bitcoin holdings to 17,595 BTC, worth over $2 billion at current prices. Metaplanet’s August purchase comes after a week of corporate crypto purchases, with over 16 firms adding $7.8 billion worth of crypto to their treasuries during the last week of July.
Spot Bitcoin ETFs also performed well in July but started August with substantial outflows ($812 million).
Metaplanet has also announced it will issue $3.73 billion worth of perpetual preferred shares to bolster its Bitcoin treasury. Michael Saylor’s Strategy has aggressively used perpetual preferred shares to bolster its Bitcoin holdings.
Iconic Satoshi Nakamoto Statue Recovered
The Lugano municipality has recovered the statue of the pseudo-anonymous Bitcoin creator Satoshi Nakamoto. The statue was reportedly stolen on Saturday. According to reports, municipal workers from the city of Lugano, Switzerland, recovered the statue after it was thrown into Lake Lugano by unknown persons. The statue was discovered in several pieces, indicating vandalism rather than theft for monetary gain. Satoshigallery, the art collective responsible for the installation, offered a 0.1 BTC reward, over $11,000 for information and recovery of the statue. The statue was created by Italian artist and Bitcoin advocate Valentina Picozzi and was unveiled in October 2024. Satoshigallery reiterated its commitment to placing similar statues across the globe, stating,
“You can steal our symbol, but you will never be able to steal our souls. Thank you all for the nice messages. We are all in this together and committed to placing the statue in 21 places around the world.”
BlackRock Bitcoin ETF Set For Substantial Boost
BlackRock’s spot Bitcoin ETF could get a significant boost after the United States Securities and Exchange Commission (SEC) increased position limits for several funds. The SEC increased the number of allowed options contracts from 25,000 to 250,000 for all ETFs with options, including BlackRock’s IBIT. However, it does not include the Fidelity Wise Origin Bitcoin Fund (FBTC). Crypto financial firm NDYIG's global head of research, Greg Cipolaro, stated in a market report,
“The change is likely to widen the monstrous lead that IBIT already has over the other players, while it hobbles FBTC’s position as the second-largest options player.”
BlackRock’s IBIT ETF has over $85 billion in assets under management, over four times more than FBTC, according to data from CoinGlass. Cipolaro believes that the SEC’s decision to raise options positions limits on Bitcoin ETFs could suppress volatility and lead to more spot demand.
“This change enables more aggressive implementation of options strategies, like covered call selling.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has started the week in positive territory after facing substantial selling pressure that dragged the price below $112,000. The flagship cryptocurrency registered a drop of over 2% on Friday and 0.67% on Saturday, settling at $112,061. The price fell to an intraday low of $111,971 on Sunday before recovering to reclaim $114,000 and settle at $114,311.
According to on-chain data, BTC’s decline over the weekend saw hodlers across the board sell their assets as the flagship cryptocurrency dipped below $112,000. According to data from analytics platform CryptoQuant, new investors and Bitcoin whales were sending their BTC to exchanges as prices fell. According to the platform, short-term holders (STHs) sent 40,000 BTC to exchanges on August 1. This was the largest figure sent to exchanges since July 15. Exchange activity also registered a substantial jump on August 1, as net inflows hit 16,417 BTC. A CryptoQuant “Quicktake” post noted,
“Conversely, the Exchange Whale Ratio indicator rose to levels exceeding 0.70, meaning that most of these deposits were from whales. When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline. If whales continue to deposit Bitcoin to exchanges at the same pace, further pressure on the Bitcoin price is expected.”
One analyst stated that BTC could be stuck in limbo until October, delivering a sobering assessment of the current market. The analyst described BTC’s technical and seasonal context as fundamentally uninviting. The analyst highlighted last week’s Bollinger Band squeeze, which resolved to the downside following a weak US jobs data report, negative ETF flows, tariffs, and escalating geopolitical tensions.
BTC rebounded on Sunday, retaking its 50-day EMA, which has served as a reliable support level and initiated fresh rallies. BTC registered a sharp decline on Friday (July 25), plunging to an intraday low of $114,779 as it started the previous weekend in the red. The price rebounded from this level to reclaim $117,000, settling at $117,565, ultimately registering a 0.69% drop. The price recovered over the weekend, rising 0.24% on Saturday and 1.31% on Sunday to reclaim $119,000 and settle at $119,398. BTC was back in the red on Monday, dropping 1.11% to $118,069. The price registered a marginal drop on Tuesday before falling to a low of 115,772 on Wednesday. BTC recovered from this level to reclaim $117,000 and settle at $117,788, ultimately registering a marginal drop.
Source: TradingView
Selling pressure persisted on Thursday as BTC dropped almost 2% to $115,800. Bearish sentiment intensified on Friday as the price plunged over 2% and settled at $113,365. The flagship cryptocurrency continued declining on Saturday, dropping almost 1% to settle at $112,601. BTC fell below $112,000 on Sunday, dropping to an intraday low of $111,971. However, it rebounded from this level to register a 1.51% increase and settle at $114,311. The current session sees BTC up almost 1%, trading around $115,373.
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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