Bitcoin News Today: Bitcoin's Bull Market Holds Breath at $115,000 Crossroads

Bitcoin demand has shown signs of weakening amid profit-taking and price consolidation, as the cryptocurrency struggles to sustain momentum above the $120,000 level and trades in a consolidation phase near $115,000. The recent correction following the $124,000 peak on August 14 has raised questions about the strength of the current bull market. Despite this, the 7.8% retracement is seen as a typical fluctuation in a longer-term uptrend [1].

On-chain data suggests that long-term holders (LTHs) are maintaining their positions, indicating confidence in future price appreciation. However, new demand from short-term investors has slowed, contributing to short-term stagnation. This shift is reflected in Bitcoin’s Apparent Demand metric, which tracks activity from young investors. While the metric remains positive at around 30,000 BTC, it has shown a clear decline, signaling a weakening of new investor participation and potential cooling of demand [3].

ETF inflows, a key indicator of institutional interest, have also slowed after reaching their peak during the recent price surge. Although net flows remain positive, the reduction in fresh capital suggests a pause in the momentum that had previously driven the market. A recent report noted a net outflow of $121 million from US spot Bitcoin ETFs on Monday, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing its first outflows since August 5. These figures indicate a potential divergence between institutional demand and the immediate price action [2].

Derivatives market signals also suggest that the bearish sentiment is growing. Negative funding rates have emerged, meaning most traders are currently betting against the price of Bitcoin. Historically, such conditions have been followed by rebounds after local bottoms, offering some support to the view that the bull market is not over [1]. Nonetheless, the recent liquidation of over $100 million in long positions in a single hour highlights the ongoing sell pressure, with market participants closely watching the 100-day simple moving average at $110,950 as a critical support level [2].

The broader macroeconomic environment also plays a role in shaping Bitcoin’s near-term outlook. Global M2 money supply growth has slowed, limiting the inflow of new liquidity into speculative assets like Bitcoin. Additionally, Bitcoin’s price remains correlated with the S&P 500, which has also seen a retracement following its recent highs. Analysts suggest that a potential Federal Reserve rate cut could serve as a catalyst for both equities and Bitcoin to resume their uptrend, but the absence of such action has left the market in a holding pattern [1].

Looking ahead, Bitcoin is expected to remain in a consolidation phase in the near term, with the $115,000 level serving as a crucial support zone. A sustained break below this level could trigger further downward movement toward $112,000 or even $110,000. Conversely, if the price stabilizes and regains control over the $115,000 area, bulls may attempt to push the price back toward the $118,000 range. However, current momentum indicators suggest that buyers are losing steam, and the market may continue to trade sideways until new demand emerges [3].

Source: [1] Has The Bitcoin Price Bull Market Topped? (https://bitcoinmagazine.com/markets/has-the-bitcoin-price-bull-market-topped) [2] Bitcoin sell pressure 'palpable' as BTC bid support stacks ... (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k) [3] Bitcoin Apparent Demand Weakens: Expansion Slows To ... (https://www.mitrade.com/insights/news/live-news/article-3-1052703-20250820)