Bitcoin’s rally toward the $122,000 mark has hit a roadblock, with weak on-chain metrics and declining ETF inflows casting doubt on a near-term breakout. Will BTC overcome these hurdles, or is a deeper correction imminent? Let’s dive into the latest Bitcoin news and analyze the key factors at play.
Bitcoin Price Struggles to Break Key Resistance
Bitcoin has been consolidating between $117,000 and $119,000, facing strong resistance near $123,200. Key observations:
- The 100-day EMA provides support, but the RSI has dropped from 74.4 to 51.7, signaling weakening momentum.
- A double-top pattern could form if BTC fails to break above $123,200, potentially triggering a bearish reversal.
- Daily trading volume has plummeted to $8.6 billion, reducing upward pressure.
On-Chain Metrics Reveal Weakness
Bitcoin’s on-chain activity suggests slowing demand:
- Active addresses and transfer volumes have declined.
- Seasonal trends show August historically underperforms, with a 60% chance of negative returns.
- Spot BTC ETF inflows dropped 80% to just $496 million last week.
Will BTC ETF Flows Rebound?
Institutional interest appears to be cooling, but upcoming catalysts could reignite demand:
- The U.S. White House may release a Bitcoin Reserve Framework, potentially boosting ETF inflows.
- The Fed’s FOMC meeting could hint at a September rate cut, encouraging speculative buying.
What’s Next for Bitcoin?
The market remains in a delicate balance. While liquidity clusters above $122,000 offer hope, weak fundamentals and seasonal headwinds suggest prolonged consolidation. Investors should monitor:
- ETF redemption trends.
- Institutional on-chain activity.
- Policy developments from the Fed and White House.
Frequently Asked Questions (FAQs)
Q: Why is Bitcoin struggling to break $122K?
A: Weak on-chain metrics, declining ETF inflows, and strong resistance near $123,200 are limiting upward momentum.
Q: Are Bitcoin ETFs losing popularity?
A: Recent data shows an 80% drop in inflows, suggesting cooling institutional demand.
Q: Could Bitcoin drop below $117K?
A: If the double-top pattern confirms, BTC could see a bearish reversal toward lower support levels.
Q: What could trigger a Bitcoin rally?
A: Positive policy updates from the White House or dovish Fed signals could reignite bullish sentiment.
