The Bitcoin (BTC) price is constantly bouncing between its key resistance and support trend levels around the $113k and $116k range. With this, traders are expecting it to move strongly to one side or the other. This recent price action comes after a strong consolidation period that may end in either major breakout/breakdown.
In this article, we focus on the technical and on-chain perspective of trend currents, in order to picture the possible price prospects of the largest cryptocurrency by market cap.
Bitcoin ETF Loses Momentum, Records 3 Consecutive Red Days
Based on The SoSoValue chart, the Bitcoin ETF net inflows have had a recent turnover to negative with August starting off at an outflow of $333 million. Besides, the Total Net Assets in the hands of ETFs have fallen from slightly below than 155 billion to less than 148 billion, indicating that both the institutions are either realising profits or are waiting for a perfect entry.
BTC Price Forms Strong Support Within Triangle Pattern
Over the recent days, the Bitcoin price has gained significant momentum, resulting in it achieving a new high in July. Notably, the BTC crypto experienced a strong bullish rebound around the $96,000 mark. This resulted in it kickstarting a bullish rally followed by a new ATH above the $123k mark.
The price however, could not sustain itself past the $123,000 resistance and has since fallen off quite dramatically. Currently, this digital asset is listed at $113,614 with an intraday trading volume of $59.43 billion and a market cap of $2.26 trillion.
The rising bearish sentiment is also indicated by the Buy-Sell Pressure (BBP) indicator, which has appeared negatively over the past few trading sessions. The trend also has volume pointing down, suggesting that the market is on a path of becoming conservative.
As the bullish momentum is already weak, the ETF inflows are declining, the market may shift towards the bearish side in case the price drops further below in the upcoming time.
However, the institutional re-entry, or macro catalyst might just as easily swing sentiment in the opposite direction.
Based on this analysis, the key support level to watch is at $110,485, followed by critical support at $105,005. If these levels fail to hold, a sharper correction could be in sight. On the upside, the immediate resistance is at $116,000, with the next major resistance at $121,000.
A move back into the ascending channel would be a positive signal, but without a significant increase in institutional inflows or a macro catalyst, the market appears to be on a path toward further consolidation or a breakdown.
Also Read: Litecoin Price Retests $125 Today, Will LTC Crypto Smash $136?
Disclaimer: The Crypto Times does not endorse or promote this crypto asset in any manner and this article was written only for educational purposes. Make sure to “DYOR” before investing into any cryptocurrency as the market is highly volatile.
