Bitcoin Price Analysis: BTC Declines As Bounce Fizzles Out Yet Again
Bitcoin (BTC) rallied above the $113,000 mark on Friday but fizzled out yet again thanks to selling at higher levels. The flagship cryptocurrency reached an intraday high of $113,390 but lost momentum, settling at $110,679. The current session sees the price marginally up, trading around $110,818.
With BTC unable to push above resistance levels, an analyst has warned of a deeper correction that could push the price below $95,000.
Bitcoin ETFs Register Outflows
Spot Bitcoin ETFs registered substantial outflows of $160 million. According to available data, none of the listed US Bitcoin ETFs registered positive inflows, marking a rare moment of synchronized withdrawals. The outflows suggest growing investor caution across the crypto and ETF markets. However, spot Bitcoin ETFs remain the dominant force in the crypto ETF sector, holding substantially more assets than spot Ethereum ETFs. However, the absence of inflows suggests investors are re-evaluating risk exposure and rebalancing their portfolios.
According to data from SoSoValue, cumulative net inflows into crypto ETFs remain positive at $12.7 billion. Total net assets for Bitcoin and Ethereum ETFs now stand at $27.6 billion.
Bitcoin (BTC) Must Cross Resistance Levels
Bitcoin (BTC) faces a major hurdle above $114,000, which has become a major source of concern for analysts. The flagship cryptocurrency has also dipped below key support levels, including the $110,000 mark. However, analysts believe the biggest hindrance at the moment is the $114,000 level. According to crypto analyst BitBull, the recent rejection from $114,000 is a cause for concern. The analyst believes $114,000 is the level to beat for BTC to make a significant recovery.
The analyst also highlighted the timeframe issue, stating that the longer it takes for the price to reclaim $114,000, the higher the chances of a crash. He also said that until this happens, any recovery is a bull trap before another wave of selling.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) experienced a sharp decline on Friday after being rejected from the $113,000-$114,000 range again. The flagship cryptocurrency dropped to an intraday low of $109,321 on Thursday, reclaiming $110,000 and settling at $110,720. It reached an intraday high of $113,390 on Friday but lost momentum after reaching this level. As a result, the price fell to $110,670, ultimately registering a marginal decline. The current session sees BTC marginally up, trading around $110,870.
With BTC struggling to push above key resistance levels, an analyst has warned that a deeper correction could push prices below $100,000, potentially as low as $95,000. Analysts from Bitfinex have identified the $93,000-$95,000 zone as the range for the ongoing corrective phase. The analysts also noted that BTC has entered its third consecutive week of decline. Historically, bull market corrections have averaged around 17% from peak to trough. However, analysts have cautioned that the short-term holder realised price sits at $108,900, just below current levels.
A break below this level could trigger a deeper correction, dragging BTC below $100,000 towards the $93,000-$95,000 zone. September is historically one of BTC’s weakest months, with investors and analysts expecting continued consolidation.
BTC registered a sharp drop on Sunday (August 24), falling to an intraday low of $110,635 before settling at $113,478. Bearish sentiment intensified on Monday as the price fell nearly 3% and settled at $110,127. BTC faced volatility on Tuesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose 1.51% to $111,788. BTC was back in the red on Wednesday, dropping 0.48% and settling at $111,253. It recovered on Thursday, rising 1.19% to reach an intraday high of $113,480 before settling at $112,574. Bearish sentiment returned on Friday as BTC fell nearly 4%, losing the crucial $110,000 level and settling at $108,378.
Source: TradingView
Price action was mixed over the weekend as BTC rose 0.41% on Saturday before dropping 0.53% on Sunday to settle at $108,247. The flagship cryptocurrency started the current week in positive territory, rising 0.92% to reclaim $109,000 and settle at $109,240. Bullish sentiment intensified on Tuesday as the price rose nearly 2% to cross $111,000 and settle at $111,247. BTC continued pushing higher on Wednesday, rising 0.46% to $111,756. BTC lost momentum on Thursday, falling to an intraday low of $109,321 before settling at $110,720. The price surged to an intraday high of $113,390 on Friday. However, it lost momentum after reaching this level and settled at $110,670, ultimately registering a marginal decline. The current session sees BTC marginally up, trading around $110,808.
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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